Israel paid the United Nations $10.5 million in damages after its assault on the Gaza Strip last year, U.N. officials said Friday.

"The government of Israel has made a payment of 10.5 million U.S. dollars to the United Nations, in respect to the losses sustained," U.N. spokesman Martin Nesirky told reporters.

"With this payment, the United Nations has agreed that the financial issues ... are concluded."

Just after the December 2008 to January 2009 conflict, U.N. Chief Ban Ki-moon indicated the world body was claiming $11 million in compensation for the damage to its buildings, warehouses, schools and vehicles.

Israel has always denied deliberately firing on U.N. property during the three-week conflict, launched after relentless militant Palestinian rocket fire from Gaza on the Jewish state.

Some 1,400 Palestinians and 13 Israelis were killed during the conflict, according to U.N. figures.

The Middle East peace process has stalled since the conflict, and the Gaza Strip, run by Hamas militants, remains under a crippling Israeli blockade.