Over the next five years, the Israel Investment Center will grant Motorola $12 million, plus $900 per employees for up to 60 months, for a maximum of 200 employees.
The researchers will be hired over the next three years, to focus on product development for the group's cellphones, computers and software products lines.
Motorola said it is already looking into the possibility of expanding activities at the facility and hire between 300 and 500 engineers within five years.
The company has maintained a presence in Israel since 1964 and employs 3,500 at several sites, developing a wide range of products and technologies.
Motorola is preparing to launch a government-backed R&D site that will initially employ 200 engineers and researchers.