Defence Minister Nirmala Sitharaman approved procurement of the Sig Sauer rifles which will be used by troops deployed along the nearly 3,600-km border with China, the sources told media.
They said the rifles, being used by the US forces as well as several other European countries, are being bought under the fast track procurement procedure.
"The contract is expected to be finalized within a week. The US firm will have to deliver the rifles within one year from the date of finalising the deal," said a senior official involved in negotiation of the deal said.
Army sources said the US-manufactured rifles will replace the Insas rifles.
The world's second largest standing Army has been pressing for fast-tracking the procurement of various weapons systems considering the evolving security threats including along India's borders with Pakistan and China.