The Israeli newspaper said the maker of iPods, IPads and iPhones has already hired Israeli high-tech veteran Aharon Aharon to run the center.
Apple was not available for comment.
Globes said that although Apple was a global innovation leader, it is a small investor in R&D. It invested $2.4 billion in R&D in 2010, just 2 percent of its revenue and less than other high-tech firms, it said.
The R&D center in Herzliya, Israel's version of Silicon Valley, would be Apple's first outside California, Globes said.
The newspaper said Apple vice president of R&D Ed Frank was currently visiting Israel.
Earlier this week, Israeli media reported Apple was in advanced talks to buy Anobit, an Israeli maker of flash storage technology, for $400-$500 million.
Apple has declined to comment on the report.
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