Israel's government is to construct a new international airport, to be located near the resort city of Eilat.
The airport will be built at Timna, the ministry of transport said.
It added that the airport would replace the current Eilat facility, the real estate for which would be sold in order to part-finance the new airport.
The ministry said the airport would take around three years to construct and cost around NIS1.6 billion ($470 million).
Transport minister Israel Katz said the decision was "historic" and ended "years of deadlock".
Eilat's current civil airport is located in the centre of the resort, just a few hundred metres from the Red Sea.