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The US says it will support providing advanced fighter jets including US-made F-16s to Ukraine and also back training Ukrainian pilots to fly them.
A senior White House official said President Biden had told G7 leaders in Japan of the decision.
President Volodomyr Zelensky, who has requested fighter jets for months, said the decision would "greatly enhance our army in the sky".
The UK, Netherlands, Belgium and Denmark also welcomed the move.
The US would "support a joint effort with our allies and partners to train Ukrainian pilots on fourth-generation fighter aircraft, including F-16s, to further strengthen and improve the capabilities of the Ukrainian Air Force", the official said.
"As the training takes place over the coming months, our coalition of countries participating in this effort will decide when to actually provide jets, how many we will provide, and who will provide them."
The announcement by the US will be viewed as a major breakthrough for the air capabilities of Ukraine, which has repeatedly lobbied its Western allies to provide jets to help in its fight against Russia.
Mr Zelensky welcomed what he described as a "historic decision", adding that he looked forward to "discussing the practical implementation" of the plan at the G7 summit in Hiroshima.
UK Prime Minister Rishi Sunak also backed the move, tweeting: "The UK will work together with the USA and the Netherlands, Belgium and Denmark to get Ukraine the combat air capability it needs."
The Ukrainian leader is due to travel to Japan to meet G7 leaders, with his office confirming on Friday that he was due to meet Mr Biden in Japan in the coming days.