The Secretariat of Christian Schools in Israel said the government would provide 50 million shekels (USD 13.7 million) for the 2015-2016 academic year and the annual average fees paid by parents would drop to USD 750 from USD 1,000 under the deal.
Christian schools in the Jewish state, 60 percent of whose Arab Israeli pupils are Christian and the rest Muslim, had been on strike protesting they had been allocated less than a third of state subsidies for equivalent Jewish schools.
"Our main aim is not funding as such but to obtain equal rights," Wadie Abu Nassar, an adviser to the conference of bishops in the Holy Land, told AFP.
Pope Francis intervened during the strike to call for a fair solution when he met at the Vatican with Israeli President Reuven Rivlin, who welcomed Sunday's accord that he said re-established trust between the two sides.
