Israel on Monday ended a freeze on tax payments to the Palestinian Authority, according to the Times of Israel.
The move came days after US President Barack Obama appealed for peace during a landmark visit to Jerusalem.
Israeli Prime Minister Benjamin Netanyahu's office announced on Monday that the tax funds have been unlocked "as per the opinion of the security cabinet," reported the Times.
This ends the block which was issued by Israel in response to the Palestinian request for statehood at the United Nations in December, a restriction that froze some $100 million in monthly funds.
At the time, the move dealt a fresh blow to an already crumbling Palestinian economy. Israel made an exception in January and February, bowing to international pressure and wiring transfers, said Reuters.