The German official, who has led the IOC since 2013, was invited to the state ceremony on September 21 by Olympic Committee of Israel President Yael Arad as a guest of honour.

Israeli President Isaac Herzog is set to attend the event, joined by victims' families and survivors of the terror attack.

Minister of Culture and Sports Chili Tropper is also expected to be in attendance, as well as representatives from the Olympic Committee of Israel.

Bach's visit to Israel would be the first by an IOC President to the country since his predecessor Jacques Rogge in 2010.

This year marks the 50th anniversary of the terrorist attack which led to the death of six Israeli coaches, five Israeli athletes and one West German police officer, and a long-standing dispute over compensation from the German Government and Bavarian authorities for the bereaved families has also been resolved.

This brings an end to the threat of the victims' families boycotting a commemoration event in Munich on Monday (September 5), the day of the attack.

An additional €28 million (£24.2 million/$28.1 million) in compensation was offered by Germany according to news agency DPA, of which €22.5 million (£19.5 million/$22.6 million) is set to be provided by the Federal Government, €5 million (£4.3 million/$5.0 million) from the Bavarian state and €500,000 (£430,000/$500,000) from the city of Munich.

Victims' families had described previous offers by the German Government as "an insult".

According to The Times of Israel, Germany had made payments amounting to €5 million (£4.3 million/$5.0 million) to the relatives of the victims so far.

A joint statement from German President Frank-Walter Steinmeier and his Israeli counterpart Herzog welcomed the agreement.

"We are pleased and relieved that an agreement on historical clarification, recognition and compensation has been reached shortly before the 50th anniversary," the joint statement read, reported by The Times of Israel.

"The agreement cannot heal all wounds. 

"But it opens a door to each other.

"With this agreement, the German state acknowledges its responsibility and recognizes the terrible suffering of the murdered and their relatives, which we will commemorate next week."

A further release of files related to the Munich Massacre also features as part of the agreement.

A series of events have been planned throughout the year to mark the 50th anniversary of the attack, with one month throughout the year dedicated to each victim.

Arad thanked Bach for accepting the invitation to the commemoration in Tel Aviv.

"In his decision to come to Israel, President Bach expresses the importance of commemorating the 11 members of the Israeli delegation to the Olympic Games in Munich for the International Olympic Committee and continues his moving action in commemorating the 11 martyrs of Munich that already began at the Rio 2016 Games and continued at the Tokyo 2020 Games with the minute of silence at the Opening Ceremony," the Olympic Committee of Israel said.

During a visit to Munich's Olympic Park last month, Bach described the Munich Massacre as "an attack on the entire Olympic community and its values".

Competition at Munich 1972 was suspended for 34 hours after the attack and a service of remembrance held in the Olympic Stadium.

IOC President Avery Brundage declared that "the Games must go on", but was later widely criticised for insensitivity after a speech compared the killing of the hostages with a political dispute over the participation of the Rhodesian team in the days before the Games.

Victims were commemorated by the IOC at the Rio 2016 Olympic Village, before a moment of silence was held at an Opening Ceremony for the first time at Tokyo 2020.