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Israel鈥檚 prime minister said Tuesday that the country has reached a 鈥渉istoric agreement鈥� with neighboring Lebanon over their shared maritime border after months of U.S.-brokered negotiations.

The agreement would mark a major breakthrough in relations with the two countries, which formally have been at war since Israel鈥檚 establishment in 1948. But the deal still faces some obstacles, including key legal and political challenges in Israel.聽Lebanese officials indicated they would approve the agreement.

At stake are rights over exploiting undersea natural gas reserves in areas of the eastern Mediterranean that the two countries 鈥� which do not have diplomatic relations 鈥� claim.

Premier Yair Lapid called the deal a 鈥渉istoric achievement that will strengthen Israel鈥檚 security, inject billions into Israel鈥檚 economy, and ensure the stability of our northern border.鈥�

The agreement is expected to enable additional natural gas production in the Mediterranean. Lebanon hopes gas exploration will help lift its country out of its spiraling economic crisis.

Lebanon and Israel both claim some 860 square kilometers (330 square miles) of the Mediterranean Sea. Under the agreement, those waters would be divided along a line straddling a strategic natural gas field.

According to a senior Israeli official, Lebanon would be allowed to produce gas from that field, called 鈥淨ana,鈥� but pay royalties to Israel for any gas produced from the Israeli side. Lebanon has been working with the French energy giant Total on preparations for exploring the field.

The agreement would also leave in place an existing 鈥渂uoy line鈥� that serves as a de facto border between the two countries, the official said. He spoke on condition of anonymity because he was discussing behind-the-scenes negotiations.

Many leading security figures, both active and retired, have hailed the deal because it could lower tensions with Lebanon鈥檚 Hezbollah militant group, which has repeatedly threatened to strike Israeli natural gas assets in the Mediterranean. With Lebanon now having a stake in the region鈥檚 natural gas industry, experts believe the sides will think twice before opening up another war.

The two sides fought a monthlong war in 2006, and Israel considers the heavily armed Hezbollah to be its most immediate military threat.

鈥淚t might help create and strengthen the mutual deterrence between Israel and Hezbollah,鈥� said Yoel Guzansky, a senior fellow at Israel鈥檚 Institute for National Security Studies. 鈥淭his is a very positive thing for Israel.鈥�

An Israeli official said the deal would go before Israel鈥檚 Security Cabinet and then the full Cabinet on Wednesday and be presented to Parliament for a 14-day review. After the review, the Cabinet would reconvene to give final, formal approval, the official said, speaking on condition of anonymity to discuss government policy.

The process will take place less than three weeks before Israel goes to the polls Nov. 1 for the fifth time in under four years.

Approval is not guaranteed. Former Prime Minister Benjamin Netanyahu, has claimed Mr. Lapid does not have the authority to sign an agreement and vowed to cancel what he calls a 鈥渄isgraceful deal鈥� if re-elected.

The Kohelet Policy Forum, an influential conservative think tank, already has filed a challenge to the Supreme Court trying to block the deal.

Eugene Kontorovich, the forum鈥檚 director of international law, claimed the agreement requires parliamentary approval. He accused the government of trying to rush through an agreement under pressure from Hezbollah. 鈥淭his means Hezbollah now overrides Israel鈥檚 democracy,鈥� he said.

Senior U.S. energy envoy Amos Hochstein, whom Washington appointed a year ago to mediate talks, delivered a modified proposal of the maritime border deal to lead Lebanese negotiator, Deputy Speaker Elias Bou Saab late Monday night, according to local media and officials.

President Michel Aoun鈥檚 office said the latest version of the proposal 鈥渟atisfies Lebanon, meets its demands, and preserves its rights to its natural resources,鈥� and will hold consultations with officials before making an announcement.

Hezbollah did not immediately comment, but its leader, Hassan Nasrallah, has said that the group would endorse the Lebanese government鈥檚 position. In the past, however, he has threatened to use its weapons to protect Lebanon鈥檚 economic rights.

Mr. Nasrallah was expected to make an official statement later Tuesday.

This story was reported by The Associated Press.聽