Israeli Prime Minister Benjamin Netanyahu has called the resumption of talks with Palestine 'a vital and strategic interest' for his country.
Netanyahu said he expected the talks to be held in a serious and responsible manner, thanking US Secretary of State John Kerry for his great efforts to bring the talks about.
According to the BBC, Israel said it would release a number of Palestinian prisoners, including some heavyweight prisoners in jail for decades, as part of the agreement.
For their part, Palestinian officials said a core demand is that Israel recognises pre-1967 ceasefire lines, but right-wing members of Netanyahu's coalition had refused to accept talks based on the issue, the report said.
Israel and the Palestinians last held direct talks in 2010, which were halted over the issue of settlement-building.
Initial talks are due to be held in Washington in the next week or so.
