The i reports on the re-establishment of diplomatic ties between Turkey and Israel, following their breakdown in 2010. The paper frames the rapprochement as driven by the prospect of a “lucrative Mediterranean gas deal” and mutual fears over security in the Middle East.

All the major Israeli dailies report on comments by Defence Minister Avigdor Lieberman to offer to restrict building outside of the settlement blocs in return for permission to build inside the areas Israel believes it should keep in any future peace deal, including Efrat and Maale Adumim.

The main Israeli newspapers also report on the passing of the Legalisation bill at its preliminary reading in the Knesset yesterday, and the attempts by its supporters to pass it into law before a High Court 25 December deadline to remove the Amona outpost. Haaretz and The Times of Israel report on comments by Jerusalem mayor Nir Barkat that he will seek the demolition of “hundreds” of illegally built Palestinian homes in Jerusalem if Armona is dismantled. Yediot Ahronot explores possible negotiating positions by the various parties to deal with the Attorney General and likely High Court’s opposition. The Times of Israel and the Jerusalem Post report on Finance Minister Kahlon’s decision to bring the ten members of his party to support the Legalisation bill on its preliminary reading, though he warned that he would not support it through further readings.

The Times of Israel reports on the question of whether President-elect Trump would allow the relocation of the US embassy to Jerusalem, highlighting that there is already a directive to that effect and that Trump would simply need to not sign a waiver preventing the directive’s implementation. The paper also reports that Trump’s aides have asked the Israeli right-wing to tone down its triumphant statements in the wake of the Republican’s victory.

Yediot Ahronot reports on comments made by President Obama that he is considering a final intervention in the Israeli-Palestinian conflict before he leaves office. This could include giving US support to a UN Security Council resolution condemning Israeli settlements. The Times of Israel reports Netanyahu’s video address urging Obama not to get involved, and to respect his 2011 statement that any resolution to the conflict was best led by the parties, and not outside actors.

Yediot Ahronot and The Times of Israel report on squabbles between Likud and Jewish Home for credit for the Legalisation Bill.

Maariv, Yediot Ahronot, Haaretz and Yisrael HaYom continue to report on the developing story of the alleged links between Netanyahu’s attorney and the company that would benefit from a German submarine deal, which the PM pushed through despite army objections.

Jerusalem Post reports comments by Opposition Leader Isaac Herzog to a visiting UK Labour Friends of Israel delegation, that Labour Leader Jeremy Corbyn must visit Israel “and most especially Yad Vashem, so that he will be in a position to better understand the danger of antisemitism, and indeed the entire story of the Jewish people, and the State of Israel”.