Israeli President Isaac Herzog speaks during the Jerusalem Post 10th annual conference in Jerusalem on Oct 12, 2021. (Gil COHEN-MAGEN / AFP)

JERUSALEM/WARSAW - Israel and Poland have agreed to improve relations that had deteriorated after Warsaw introduced a law last year limiting the ability of Jews to recover World War II properties, saying on Monday they would mutually restore ambassadors.

The move marked a shift for new Israeli Prime Minister Yair Lapid, who as foreign minister had denounced as "anti-Semitic and immoral" the bill affecting property seized by Nazi German occupiers and retained by Poland's post-war communist rulers.

Israeli President Isaac Herzog's office said the new Israeli ambassador-designate to Poland will present his credentials in the coming days

"It was agreed that relations would be restored to their proper course," said a statement issued by Israeli President Isaac Herzog after he spoke to his Polish counterpart Andrzej Duda.

"Both presidents expressed their hope that any future issues between Poland and Israel will be solved through sincere and open dialogue and in a spirit of mutual respect," it added.

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Duda's office said the Polish ambassador to Israel, recalled during the row, should return. Herzog's office said the new Israeli ambassador-designate to Poland will present his credentials in the coming days.