The process is already in motion and according to the Palestinians may end this weekend.
Last week, the government directed the defense establishment to prepare for the transfer of bodies of Palestinian terrorists buried in Israel.
The matter was apparently raised during a meeting between Prime Minister Benjamin Netanyahu envoy Yitzhak Molcho and the Palestinian president.
Last year, Israel agreed to transfer 84 bodies. The plan had been frozen after the decision became public.
"Israel and the Palestinian Authority are committed to achieving peace and the sides hope that an exchange of letters between President Abu Mazen (Abbas) and Prime Minister Netanyahu will be beneficial," a joint statement following the Molcho-Abbas meeting said.
Elior Levy contributed to this report
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