Israel to compensate family for mistaken killing by Mossad

But the Israeli daily Ha'aretz cited Norwegian officials who put the figure at some $400,000 — a sum Israeli sources said "sounded reasonable."

The money will be divided between Bouchiki's widow, Toril, their daughter and his son from a previous marriage. Toril Bouchiki, who was pregnant at the time, was with her husband the night he was killed.

The two had been walking home from a movie, when two Mossad agents opened fire, killing him.

The agents had mistaken Bouchiki for Hassan Salameh, a Palestinian terrorist believed to have masterminded the 1972 massacre of Israeli athletes at the Munich Olympics.

Salameh was killed in a 1979 car-bomb explosion in Lebanon.

Five Israeli agents were convicted and served short jail sentences in connection with Bouchiki's slaying. But Israel never took responsibility for the attack.

After growing pressure from members of Bouchiki's family and from the Norwegian government, Israel decided to address the issue.

Prime Minister Shimon Peres directed attorney Goldenberg to negotiate on Israel's behalf with the Bouchiki family in what he described as a "humanitarian gesture."