The Trump administration is nearing completion of new "buy American" rules to make it easier to sell U.S.-made military drones overseas and compete against fast-growing Chinese and Israeli rivals, senior U.S. officials said.

While President Donald Trump's aides work on relaxing domestic regulations on drone sales to select allies, Washington will also seek to renegotiate a 1987 missile-control pact with the aim of loosening international restrictions on U.S. exports of unmanned aircraft, according to government and industry sources.

At home, the U.S. administration is pressing ahead with its revamp of drone export policy under heavy pressure from American manufacturers and in defiance of human rights advocates who warn of the risk of fueling instability in hot spots including the Middle East and South Asia.