Eleven Israeli athletes were murdered by the Palestinian terrorist organization Black September in the "Munich Massacre" during the 1972 Olympics.
Eight members then stormed the Olympic village, killing two Israeli athletes and taking nine Israelis hostage.
The organization demanded that Israel release 234 Palestinian prisoners in exchange.
West German police then fired at Black September, who responded by killing all the hostages.
In the ensuing fighting, five members of the terrorist organization and a West German policeman were killed.
Now the German state has reached an agreement with affected families on compensation for the attack, days before the 50th anniversary of the terrorist attack.
The country's leaders attend
The families, who had previously planned to boycott the memorial that the city is organizing on Monday, will now attend.
German President Frank-Walter Steinmeier and Israel's Isaac Herzog will also be present during the ceremony.
"We are pleased and relieved that an agreement on historical clarification, recognition and compensation has been reached just before the 50th anniversary and before the Israeli president visits Germany," they said in a joint statement, adding:
"The agreement cannot heal all wounds.
But it opens a door to each other.”
Revokes privacy
As part of the agreement, Germany acknowledges "its responsibility and the immense suffering of those who were murdered and their relatives".
Germany is also to declassify documents relating to the hostage-taking and the subsequent failed rescue operation.
"I want to express my gratitude for this important step by the German government, led by Chancellor (Olaf) Scholz, which accepts responsibility and pays reparations for the historic injustice suffered by the families of the victims of the Munich massacre," Isaac Herzog said in a separate statement. .