With the approval of Israel and under the auspices of the UN, Qatar will return to transfer funds to needy families in the Gaza Strip starting in September.
The transfer of Qatari funds was stopped because of the fear that some of the money would go to Hamas - and not just to the needy in Gaza.
Defense Minister Benny Gantz explained the decision to support the resumption of funds transfers.
"At the end of operation ‘Guardian of the Walls,’ I declared that the status quo will be no longer. We will not tolerate any threat to our sovereignty - from the smallest fire balloon to rockets fired over our cities - we have responded in the past and will respond to any future threat forcefully. We will also continue our pressure campaign for the return of the Israeli soldiers and citizens that are being held hostage by Hamas," Gantz said.
"At the same time we are facilitating humanitarian aid to Gaza. I have been in contact with Qatari officials to establish a mechanism that ensures the money reaches those in need, while maintaining Israel's security needs.
"Fuel is currently purchased by UN officials with Qatari funding. Under the new mechanism financial aid will be transferred to hundreds of thousands of Gazan people by the UN directly to their bank accounts, with Israel overseeing the recipients. We are also continuing our dialogue with the Palestinian Authority in order to examine the possibility of establishing an alternative mechanism for the transfer of funds under their supervision," he added.
"I would like to thank Qatar for taking a positive role as a stabilizing actor in the Middle East. I would also like to personally thank the UN envoy to the Middle East, the US Secretary of State, the US embassy, and all our partners who are involved. I would also like to express a very big thank you to Egypt, which is a cornerstone for keeping the quiet, stability and security in the region," Gantz concluded.