An informal notification of the proposed sale has been sent to the U.S. Congress, the four sources said on condition of anonymity because they were not authorized to speak about the possible deal.
The potential sale included 108 General Dynamics Corp M1A2 Abrams tanks worth around $2 billion as well as anti-tank and anti-aircraft munitions, three of the sources said. Taiwan has been interested in refreshing its existing U.S.-made battle tank inventory, which includes M60 Patton tanks.
The United States is the main arms supplier to Taiwan, which China deems its own and has never renounced the use of force to bring the self-ruled island under its control.
Taiwanese President Tsai Ing-wen said in March the United States was responding positively to Taipei’s requests for new arms sales to bolster its defenses in the face of pressure from China. The United States has no formal ties with Taiwan but is bound by law to help provide it with the means to defend itself.