The massive payout is set to put an end to an eight-year row.

Spain, Ireland and Norway will formally recognise a Palestinian state on Tuesday in what Spanish Prime Minister Pedro Sanchez on Tuesday called a "historic decision". The move has been slammed by Israel as a "reward" for Hamas more than seven months into the devastating Gaza war.

Ireland will recognise a Palestinian state, its Prime Minister Simon Harris said on Wednesday (May 22), in a joint announcement with Oslo and Madrid.

The UK government has been told by Ireland to "stand by its commitments" on avoiding a hard border between Northern Ireland and the Republic.