Prime Minister Shinzo Abe and President Benigno Aquino III will agree this week on a deal paving the way for Japan to supply the Philippines with used military equipment, possibly including aircraft that could be deployed to patrol the disputed South China Sea, sources said.

The deal will mark the first time Japan has agreed to directly donate military equipment to another country, and is the latest example of Abe's more muscular security agenda.

The agreement in principle on military technology will be announced after Abe and Aquino meet on the sidelines of the Asia-Pacific Economic Cooperation summit in Manila, according to three sources in Tokyo familiar with the issue.