Israel has agreed to allow Saudi Arabia to run charities in East Jerusalem in a bid to curb Turkey's influence in the city, Israel Hayom newspaper reported.
The decision came during the secret meeting that took place between Israeli Prime Minister Benjamin Netanyahu and Saudi Crown Prince Mohammed Bin Salman earlier this week.
The paper cited senior Saudi officials who attended the meeting as saying that Israel will also support including Saudi representatives in the Islamic Waqf Council which is exclusively managed by Jordan.
According to the officials, Saudi Arabia wants Israel to intervene and stop the upcoming administration of President-elect Joe Biden from joining the nuclear agreement with Iran and to ease possible pressure it will impose on Riyadh.
"The Saudis also want Israel to renew peace talks with Palestinian Authority President Mahmoud Abbas and to accept a long ceasefire with the Gaza Strip, mediated by Egypt. In return, the Saudis are willing to help provide funds for the Palestinian Authority and Gaza," the sources added.
The Turkish government has been funding projects worth tens of millions of dollars through Islamist-Turkish non-profit organisations in Jerusalem. The funds were approved by Turkish President Recep Tayyip Erdogan.