Israel offered Turkey a deal in which the relatives of the Turks killed by naval commandos in the raid of the Mavi Marmara would be paid compensation in exchange for the Turkish government's assistance in indemnifying the Israeli Navy against lawsuits, Reuters reported an Israeli official as saying on Thursday.
"We made a compensation offer, and asked the Turks to do what needs to be done to address our legal concerns. We also want to see them return their ambassador and allow us to appoint a new ambassador in Ankara," the official said.
"For now, however, there are still big obstacles," he added.
Turkish Foreign Minister Ahmed Davutoglu rejected the reports of an Israeli offer as "speculative," and insisted that his government's demand for an apology from Jerusalem had not changed.