Nurses planned to return to work Thursday.
Under the new deal, reached after a seven-hour, overnight hearing at the Labor Court, wages will rise by 14 percent during the next 4 1/2 years, Ynetnews.com reported.
The Treasury said wages would increase between $260 and $1,500, depending on seniority. Officials said 1 percent of the new funds would be allotted to "professional solutions" for issues the nurses brought up during negotiations.
Health Ministry officials said the 17-day strike delayed 110,000 infant vaccinations, 55,000 schoolchildren vaccinations and 24,000 routine pre-natal checks, as well as about 9,000 canceled surgeries.