The radar is part of an early warning system, The Wall Street Journal reported. The system is supported by NATO and aimed at protecting members of the alliance.
Negotiations went on for months, with the major Turkish concern whether data from the radar installation would be shared with Israel, officials told the Journal. Turkey was told Israel already has an X-Band radar installation.
The Turkish radar system could be up and running by the end of the year.
Turkey's decision to allow the radar on its soil could increase tensions with Iran. The two countries, which share a border, are at odds over the violence in Syria. The United States charges Iran has been aiding Syrian President Bashar Assad's crackdown on the protest movement while Turkey has been calling on Assad to back off.