Prime Minister Binyamin Netanyahu has decided to allow the transfer of funds to the Palestinian Authority, which is ruled by Fatah.
The Prime Minister's Office said that the decision was reached with the consent of the ministers who sit on the diplomatic-security cabinet. Treasury Minister Yair Lapid will instruct his ministry to transfer the funds to the PA.
The funds, from customs collected by Israel on behalf of the PA, were frozen after the PA made a unilateral move in the UN, gaining recognition as a non-member observer state.
The last transfer of funds from Israel to the PA was made in late November, just two days before the PA's UN move.