The Israeli government Sunday authorised 1,500 more Jordanians to come and work in its Red Sea resort of Eilat to combat a labour shortage, the tourism ministry said.
It said the decision was taken because of the "serious crisis" caused by not enough hotel workers.
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The Jordanians would enter Israel to work and go back across the border to Jordan at night once their shift was finished, the ministry said in a statement.
"I am persuaded that this decision will reinforce peace between Israel and Jordan, and help reduce high unemployment in southern Jordan," it quoted Tourism Minister Uzi Landau as saying.
Ministry figures show that some 300 Jordanians currently work in and around the resort, which has about 12,000 hotel rooms.
Jordan signed a peace treaty with Israel in 1994, becoming the second Arab state to do so after Egypt in 1979.