Israel and Morocco have agreed to normalise relations in a deal brokered with the help of the US, making Morocco the fourth Arab country to set aside hostilities with Israel in the past four months.

As part of the agreement, US President Donald Trump agreed to recognise Morocco’s sovereignty over the Western Sahara, where there has been a decades-old territorial dispute with Morocco pitted against the olisario Front, a breakaway movement that seeks to establish an independent state in the territory.

Mr Trump sealed the agreement in a phone call on Thursday (US time) with Morocco’s King Mohammed VI, the senior US official said.

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Morocco is the fourth country since August to strike a deal aimed at normalising relations with Israel.

The others were the United Arab Emirates, Bahrain and Sudan.

Under the agreement, Morocco will establish full diplomatic relations and resume official contacts with Israel, grant overflights and also direct flights to and from Israel for all Israelis.

“They are going to reopen their liaison offices in Rabat and Tel Aviv immediately with the intention to open embassies. And they are going to promote economic co-operation between Israeli and Moroccan companies,” White House senior adviser Jared Kushner told Reuters.

-AAP