Palestinian workers are being thrown a lifeline of up to $10 million to safeguard their jobs in Gaza.

The US Agency for International Development said it is willing to buy settler’s glasshouses to give them to the Palestinians to save the jobs of some 4,000 workers.

A spokeswoman said: "We have reached an agreement in principle, but there are still legal, financial and implementation details that need to be worked out.”

The glasshouses cover some 4,000 dunams and their fate - being taken down, moved or sold - must be dealt with by next month when Israel is scheduled to begin pulling out of the area. Exports from glasshouse production are worth close to $120m annually.

So far, only 59 of 160 farmers in Gaza have come to an agreement with the government to move their businesses.

The US move is supported by the Israeli government, although no formal government approval is needed.

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