The German Defence Ministry has approved a 58-million-euro (65-million-dollar) investment in Turkey's Incirlik air base, from which it is supporting the US-led military campaign against Islamic State extremists, news magazine Der Spiegel reported Tuesday.
The ministry had suspended the investment - needed to build a new airfield, a command post and accommodation for soldiers - amid a diplomatic row that saw the Turkish government impose a ban on German lawmakers visiting the base.
Spiegel reported that the investment had been approved amid signs that the row will be resolved imminently.
Chancellor Angela Merkel said at the weekend she expects "positive news" on the lawmaker ban after meeting with President Recep Tayyip Erdogan at the Group of 20 summit in China.
Strained relations between Germany and Turkey worsened in May, when the Bundestag passed a parliamentary resolution that declared the mass killing of Armenians a genocide.
Turkey, the Ottoman Empire's successor state, accepts that many Armenians were killed during the conflict, but vehemently rejects that the killings constitute genocide.
On Friday, the German government insisted that the resolution was "not legally binding," a move interpreted by some as a concession to Turkey in an attempt to bring about the lifting of the lawmaker ban.