Germany has agreed a compensation deal with the relatives of Israelis killed during the 1972 Munich Olympics.

Eleven Israeli athletes were killed after being taken hostage by members of a Palestinian militant group.

The €28m (£24m) deal was struck days before the 50th anniversary of the tragedy.

Families earlier this month threatened to boycott commemorations of the tragedy, saying the amount they were offered was too low.

Israeli President Isaac Herzog welcomed the deal, calling it was an “important step by the German government”.

The Munich massacre on 5 September 1972 is one of the darkest chapters in Olympic history.

Members of the Israeli team were taken hostage inside the Olympic village by Palestinian gunmen from the Black September group.

Two were shot dead almost immediately, while the others were killed during a gun battle with West German police at a nearby airfield, as the militants tried to take them out of the country.

In a joint statement, German President Frank-Walter Steinmeier and Mr Herzog said they were “happy and relieved” that an agreement on historical clarification had been reached.

Germany has also said it will declassify documents related to the hostage-taking and the botched rescue operation.

For many years, the victims’ families have blamed German authorities for not doing enough to protect athletes and failing to be transparent about its security shortfalls.