The International Olympic Committee will contribute $US250,000 ($A270,000) toward a memorial for the victims of the attack on the Israeli team at the 1972 Munich Games.
The Sueddeutschen Zeitung newspaper reports the IOC, headed by the German Thomas Bach, pledged the contribution toward the $US2.3 million ($A2.5 million) project.
The IOC confirmed the report when contacted by The Associated Press on Thursday.
The German Olympic Sports Confederation has already pledged $US27,000 ($A29,000) for the project. Taxpayers will fund the rest.
The results of a competition for a memorial will be revealed on September 19. Construction should be completed in the autumn of 2016.
The memorial will commemorate the 11 Israeli athletes and officials who died in the attack by Palestinian militants on the Israeli delegation in the Olympic village and during a failed rescue attempt by German authorities at an airfield near Munich.
The IOC has been criticized for not holding a minute of silence for the Israeli victims at the opening ceremony of recent games.
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