Canada is offering new economic aid worth $66 million to the Palestinians.
Prime Minister Stephen Harper announced the aid during a visit to the West Bank city of Ramallah Monday where he met with Palestinian Authority head Mahmoud Abbas.
The government says the money will help advance the peace process, promote security and deliver humanitarian assistance.
Since the signing of the Oslo peace accords in 1993 and the creation of the Palestinian Authority, Canada has provided more than $650 million in development assistance for the West Bank and Gaza.
Harper is on his first official visit to the Middle East and later today is slated to make history by becoming the first Canadian prime minister to address the Knesset _ Israel`s parliament.
He began his first full day in Israel with a visit to the Church of the Nativity in Bethlehem. The ancient church is built over the grotto that many believe is the birthplace of Jesus Christ.
Yesterday, Harper and his wife, Laureen, were treated to an exceptionally warm welcome to Israel at Prime Minister Benjamin Netanyahu's office.