The US State Department has approved a possible sale to Germany of F-35 fighter jets, munitions and related equipment for an estimated cost of $8.4 billion, the Pentagon said.

The potential deal came after German Chancellor Olaf Scholz pledged to modernize his country's armed forces.

The Pentagon Agency for Security and Defense Cooperation has notified Congress of the potential sale.

Despite State Department approval, the notice does not indicate that the contract has been signed or negotiations have been completed. Notice of a potential sale is required by law.

In March, Germany said it would buy 35 American F-35 fighter jets to replace the aging Tornado.