Eitan Naeh was formally selected by a government committee, said foreign ministry spokesman Emmanuel Nahshon.
He said the timeline for him being confirmed was not yet determined.
Naeh, the current deputy head of mission at the Israeli embassy in London, will become his country's first ambassador to Turkey since Israeli commandos raided a Gaza-bound ship of activists in 2010.
The raid killed 10 Turks and prompted Ankara to expel the Israeli ambassador.
The normalisation agreement had been urged by the United States, which is keen to see its NATO ally, overwhelmingly Muslim Turkey, resume its previously tight relationship with Israel.
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