The country has stationed occupation forces on the Golan Heights since seizing them from Syria in the 1967 war, however the Israeli military recently concluded that an armed conflict with Damascus was becoming increasingly unlikely, prompting the partial withdrawal.
Haaretz said the move was largely motivated by a desire to avoid provoking Syria by staging further military exercises on the Heights. It said training maneuvers would now take place in the Negev desert, in southern Israel.
The Syrian military has reportedly reciprocated by reducing its combat readiness along its border with Israel.
Public discussion in Israel of the situation surrounding the Golan Heights has been heated recently, with fears that a misunderstanding could spark off a war dominating the debate.
At the same time, the leaders of the two countries have publicly expressed a desire to continue their peace dialogue, albeit on divergent terms.
While Israeli Prime Minister Ehud Olmert has said he would be willing to hold talks without intermediaries or preconditions, Syrian President Bashar al-Assad has said he would insist on the participation of outside negotiators and would require a guarantee that the Golan Heights would eventually be returned.
