The vote came amid increasing tensions between Israel and the Palestinians, with a wave of deadly attacks on Israelis and clashes at protests in the occupied territories.
Israel's parliament, the Knesset, voted unanimously in favour of the bill in first reading on Wednesday, with about half of all deputies in attendance.
It will now be studied in committee before returning to parliament for a second vote.
Both Arabic and Hebrew are official languages of Israel, but while the vast majority of Israeli Arabs speak Hebrew, Arabic is not widely spoken among the Jewish population.
"Language is a door to culture," he told AFP. "I am looking reality in the eyes and I understand there is no possibility to walk to peace without understanding each other."
Hand in Hand, a centre for Jewish-Arab Education in Israel, welcomed the vote, with its chief executive Shuli Dichter calling it "a good and important decision".
Arab Israelis, the descendants of Palestinians who remained on their land after the creation of Israel in 1948 and who are citizens of the Jewish state, make up about 18 percent of its population.
Many of the attackers have been shot dead, including one in Hebron on Wednesday. Along with those killed in anti-Israeli protests, 60 Palestinians have died in the unrest, as well as one Arab Israeli.
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