Israel and Turkey have normalised relations, ending a six-year rift over the killing by Israeli troops of 10 Turkish activists on a Gaza-bound ship, the BBC reports.
Israeli Prime Minister Benjamin Netanyahu said it was an important step that would boost his country’s economy.
Turkey’s President Recep Tayyip Erdogan expressed hope it would help improve the humanitarian situation in Gaza.
The deal will allow Turkey to deliver aid to the Palestinian territory and carry out infrastructure projects.
Israel will also pay $20m into a compensation fund for the dead activists’ families.
The agreement, which will be signed on Tuesday, was formally announced by Turkish Prime Minister Binali Yildirim and Mr Netanyahu in separate speeches in Ankara and Rome on Monday.
Israel and Turkey were close allies before Israeli commandos intercepted the Turkish-owned ship Mavi Marmara, which was part of a flotilla attempting to breach Israel’s blockade of Gaza, on 31 May 2010.