Israel’s Cabinet on Sunday approved a deal to upgrade ties with Morocco, Israeli broadcaster N12 News reported.
The agreement, a parting foreign policy push by the former Trump administration, will go to Israel’s parliament for ratification.
Morocco is the fourth Arab country to forge relations with Israel.
In December, it followed the UAE, Bahrain and Sudan by moving towards normal relations with Israel, accords brokered by Washington last year.
Palestinians have censured the accords, seeing them as a betrayal of a long-standing demand that Israel first meet their demand for statehood.
As the Trump administration sought to isolate Israel’s arch-enemy Iran, the accords were sweetened with promises of business opportunities or economic aid.
Israel’s economy ministry announced on Sunday that the countries had agreed to promote trade and economic collaboration in fields including regulation and innovation.
The ministry said both sides were keen to sign the accord in about two weeks.
Before leaving the White House, Mr Trump awarded Morocco's King Mohammed VI the Legion of Merit, Degree of Chief Commander, citing the monarch's role in strengthening ties between the two countries and positive contributions to the Middle East and North Africa region.
Meanwhile, the UAE announced yesterday that it will open its embassy in Tel Aviv after it was given approval to do so by the Cabinet.
The country’s first diplomatic mission to Israel was approved by ministers in a session chaired by Sheikh Mohammed bin Rashid, Prime Minister and Ruler of Dubai.
The decision follows the normalisation of relations between the UAE and Israel last year.