Israel will release a 'limited' number of Palestinian prisoners - a day after it was announced that direct peace talks will resume.
An Israeli government minister says some of those who will be freed have been in prison for up to 30 years.
The international community has welcomed the agreement - which was brokered by US Secretary of State John Kerry.
He says "The representatives of two proud people have decided that the difficult road ahead is worth travelling."
Speaking in Amman - the former Presidential candidate said the two sides would be in Washington soon:
You can see more from John Kerry below: