"Ministers have agreed a package of measures to ensure that our soldiers get the support they need in the field, and that we can make the other strategic investments we still need," he said at talks in Istanbul, Turkey.

"Solidarity in NATO means on the front line, but it also includes on the bottom line," he told the ministers.

A NATO official said the budget hole would amount to around 640 million euros (878 million dollars) this year in the alliance's investment budget. A separate budget funding military operations is unlikely to be greatly effected.

To address the problem, the ministers agreed to inject fresh money into the investment budget this year, to reform the budgetary system and to "make savings", she said, without providing details.

They also agreed to invest in operations and future strategic priorities.

Prior to the talks, a senior US official urged the 28 NATO allies to invest more in missile defence and common projects, like heavy lift helicopters, medial facilities and technology to counter improvised bombs.

So-called improvised explosive devices are a major cause of casualties in the NATO-led force in Afghanistan, which is battling to stave off a Taliban and Al Qaeda inspired insurgency.

"We need to fund the critical operations that we are engaged in, Afghanistan, while also investing in those capabilities that are necessary to meet our long-term strategic priorities," the US official said.

"If you have a choice between not doing something, because you can't afford it, or paying a little and doing it collectively, it makes more sense, particularly in a time of dwindling resources," he told reporters.

A NATO official said US Defense Secretary Robert Gates told the ministers here that "NATO is still using Cold War-era structures, the military structure is too heavy and has to be streamlined."

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