The campus is set to open in 2015, with an enrollment of 2,500, the Council for Higher Education in Israel said.
Students who complete their coursework will receive a degree from Texas A&M.
President Shimon Peres and Education Minister Shai Piron have been involved in the project, Ynetnews.com reported Wednesday.
The council said it would be the first time a leading foreign university opens a campus in a city with a predominantly Arabic population. Nazareth is known as "the Arab capital of Israel."
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