The Israeli security cabinet on Sunday approved the transfer of around $700 million in tax revenues to the Palestinian Authority, Barak Ravid of Walla! News reported.

According to Ravid, the cabinet also decided to deduct another $200 million of the PA tax revenues due to the stipends paid by the PA to terrorists and their families.

The PA has refused to collect the funds that Israel collects on its behalf for the past six months, following a decision by PA chairman Mahmoud Abbas to cut ties with Israel in protest against its plans to apply sovereignty over Judea and Samaria.

However, following the election of Joe Biden in the US, the PA announced earlier this month that it would resume receiving tax revenues from Israel and restore other ties which had been severed.

The Israeli government last year decided to offset the tax money it collects on behalf of the PA because of the monthly financial aid it provides to families of terrorists. The decision meant it would withhold around $10 million per month from revenues of some $190 million per month it collects on the PA's behalf.

PA officials have remained defiant and have made clear that the PA will never cease paying terrorists' salaries.

Abbas has in the past called the PA's continued payments to terrorists a "red line" that would not be halted under any circumstances.