World Bulletin / News Desk
The newspaper said Israeli intelligence and foreign ministry officials were at the most recent of long-running negotiations on Sunday, which are expected to result in Ambassador David Govrin resuming his duties in the near future.
An unnamed Israeli official said the domestic intelligence agency Shin Bet and Prime Minister Benjamin Netanyahu still need to make a final decision.
Govrin and the rest of the embassy staff were called back from Cairo in late 2016 for security reasons.
The Israeli foreign ministry said it would not comment on the issue.
Egypt was the first Arab country to recognize Israel after signing a peace treaty with the self-proclaimed Jewish state in 1979.