"The four families decided to bury their dead in Israel. The funerals will be held on Tuesday, a Jewish community source told AFP in Paris.
The bodies of the four victims -- Yoav Hattab, Philippe Braham, Yohan Cohen and Francois-Michel Saada -- will be taken from the forensic institute in Paris on Monday and flown to Israel, the source said.
Israeli Prime Minister Netanyahu's office confirmed he had agreed to the families' request they be buried in Israel and ordered government officials to help with the burial arrangements.
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An Israeli official involved in a Sunday night planning session told AFP the funerals would take place at Jerusalem's Har Hamenuhot cemetery at 1100 GMT on Tuesday. Earlier, the Jewish community source had given a different location and time.
The four were shot dead on Friday after being taken hostage with a group of other shoppers at a kosher supermarket in eastern Paris by jihadist Amedy Coulibaly, who was later killed during a police raid.
Israeli national carrier El Al announced it would be flying the bodies from Paris.
El Al said the families of the deceased would also be on board the flight from Paris due to land in Israel at 0205 GMT on Tuesday.