JERUSALEM, Nov 18 (Reuters) - Israel's cabinet on Sunday approved the nomination of Amir Yaron for Bank of Israel governor, the prime minister's office said.

The final decision lies with Israeli President Reuven Rivlin.

The Israeli-born Yaron, 54, a professor at the Wharton School of the University of Pennsylvania and who has lived in the United States for two decades, was chosen by Prime Minister Benjamin Netanyahu last month.

He would succeed Karnit Flug, whose five-year term concluded last week.

"I am aware of the heavy responsibility placed on my shoulders, and I will do all in my power to fortify the strength and continued growth of the Israeli economy," Yaron said in a separate statement from the Bank of Israel.

"I am excited to return to Israel after the years I spent in the United States pursuing my academic work, and I view this position as the pinnacle of my professional career."

Israel's monetary policy committee next decides on interest rates on Nov 26. (Reporting by Steven Scheer Editing by Tova Cohen)