After talks that included UN peacekeeping officials, Israel reversed its claim that, because the two nations did not have diplomatic ties, it would not allow troops from Indonesia, the official said.
The official spoke on condition of anonymity because the negotiations were private.
Vice President M. Jusuf Kalla said the dispatch of troops was only a matter of time as Indonesia was only waiting for a fixed schedule from the UN.
"We are still waiting for the schedule from the United Nations," the vice president told the press, according to local newspapers.
"In Asia, we have the highest readiness for the deployment, and our armoured cars have even already been painted white indicating that we are there under the auspices of the United Nations," Kalla said.
Turkey submits resolution
Meanwhile, Turkey's government on Friday submitted a resolution to parliament to send peacekeepers to Lebanon despite public opposition to the deployment.
The parliament is expected to vote on the resolution Tuesday. Many Turks fear that their soldiers could end up facing hostile fire or could clash with their fellow Muslims.
But Prime Minister Recep Tayyip Erdogan offered assurances that Turkish soldiers taking part in the UN Peacekeeping mission would not be disarming Hizbullah militants.
According to the resolution, Turkey would contribute an unspecified number of troops, a navy task force, support allied countries in air and sea shipments, and help train Lebanese army troops.
Europe, the United States and Israel are all eager to see peacekeepers from Muslim Turkey in Lebanon, in the hopes that strong Muslim participation would avoid any impression in Lebanon that the UN peacekeepers are primarily a Christian, European force.