
Last month, the families had said they were unhappy with the latest German compensation offers and that they planned to boycott a ceremony on Monday in Munich marking the 50th anniversary of the attack in protest.
The federal government will contribute €22.5 million, while €5 million will come from the state of Bavaria and €500,000 will come from Munich, said the spokesman.
On Sept 5, 1972, members of the Israeli Olympic team were taken hostage at the poorly secured athletes’ village by Palestinian gunmen from the radical Black September group.
Within 24 hours, 11 Israelis, five Palestinians and a German policeman were dead after a standoff and subsequent rescue effort erupted into gunfire.