German Foreign Minister Guido Westerwelle on Friday welcomed an Israeli decision to allow the German-funded upgrading of a sewage works in Gaza, DPA reported.
The development of the sewage treatment plant, to which Germany is donating 20 million euros (27 million dollars) was a "tangible element to improve the life of people in the Gaza Strip," a ministry spokesman said.
The plant currently receives sewage from households totalling around 600,000 people, though it can process only around half that. The rest is pumped into the Mediterranean or runs into the groundwater.
After its upgrading, it should be able to treat all of the sewage.
Gaza is expected to come up in German-Israeli talks due to take place in January 31.
However, due to a strike at the Israeli Foreign Ministry it is not yet certain that the talks, which German Chancellor Angela Merkel is to attend, will be able to go ahead.