Austria will release funds to the UN's Palestinian relief organization UNRWA that were blocked after allegations agency staff were involved in the Oct. 7 attacks on Israel.
Vienna's decision comes after UNRWA set out an action plan to better ensure its impartiality, strengthen internal reviews, and improve how its staff are monitored.
"After a thorough analysis of the action plan, we will release funds to UNRWA again," the Austrian foreign ministry said on Saturday.
Funds totalling 3.4 million euros ($3.70 million) have been budgeted for 2024, with the first payment due to be made in the summer, it added.
Austria was one of the donor states to freeze some $450 million in funds after Israel accused 12 UNRWA staff of participating in the Hamas-led attack that triggered the Gaza war.