Israel and China have opened talks on a free trade deal which could see commerce double between the two countries, Israeli officials announced on Tuesday, AFP reports.

"China is prepared to begin free trade agreement negotiations with Israel," Israeli Prime Minister Binyamin Netanyahu said during a meeting with Chinese Vice Premier Liu Yandong.

"This is a momentous development and we are ready to do so right away."

 A statement from Netanyahu's office quoted Liu as saying the two countries are headed towards "big mutual projects."