Germany and the Palestinian Authority (PA) have signed a €100 million ($117 million) cooperation agreement that will see German investment in areas under PA control, Israel Hayom reported Sunday.

The deal was signed on Friday in Ramallah, according to the report.

The German donation aims to finance "vital projects" in PA-assigned areas of Judea and Samaria, ruled by chairman Mahmoud Abbas, as well as in the Gaza Strip, which is controlled by the Hamas terrorist group.

The donation will finance "sustainable economic development in [Palestine] over the next two years," according to PA cabinet leader Mohammad Shtayyeh.

Shtayyeh thanked Berlin and the people of Germany for their "generous and continuous support and commitment" to the Palestinian cause, saying, "We hope our friends in Germany, the European Union and the international community will help put pressure on Israel to allow elections to be held in all the Palestinian territories, including Jerusalem."

Germany's representative to Ramallah Oliver Owcza praised the bilateral relations between his country and the PA, reiterating German support for a negotiated two-state solution to the Israeli-Palestinian Arab conflict.

The PA has repeatedly asked for foreign donations in recent years, claiming it is on the verge of collapse due to a worsening financial crisis.

At the same time, it continues to spend six percent of the PA’s annual budget to pay $4.5 million a month to jailed terrorists and another $6.5 million to their families.

In recent years, the PA saw some vital funding cut by the administration of former US President Donald Trump.

The Biden administration has sought to restore ties with the PA. As part of these efforts, the Biden administration announced it intends to resume aid to UNRWA as well as other aid to the PA which was suspended by the Trump administration.