Only one of three Turkish conditions for renewing full diplomatic relations with Israel have been met and talks are still ongoing, Turkey's Foreign Minister Mevlut Cavusoglu says.
An Israeli government official said this week that Tel Aviv had agreed to pay compensation to Turkey for a deadly raid five years ago, which saw Israeli commandos board the Gaza Strip-bound Mavi Marmara aid ship and kill 10 Turkish nationals.
The official had indicated that the deal was close to being concluded, bringing to an end years of discord between two key United States allies.
However, a key question remained over whether Turkey would continue to press for the removal of the Israeli blockade on Palestinians in the Gaza Strip as one of its core three demands.
"One of our conditions has been met. There are ongoing talks at expert level to fulfil the other two," Cavusoglu said late Friday during a visit to New York, in the first public remark by an official in either country.
In 2013, under pressure from Washington, Prime Minister Benjamin Netanyahu apologised to Turkey over the Mavi Marmara incident, in what was seen as the first step in mending ties. The compensation question had been the second key demand.
Delegations from both countries held talks this week in Switzerland, an Israeli government official had said on condition of anonymity.
According to the official, Turkey and Israel would also begin to negotiate on a gas pipeline between the two countries.
Turkey currently buys most of its gas from Russia, though Ankara and Moscow have seen their relations deteriorate drastically in recent weeks after the Turkish military downed a Russian plane.
Israel's underdeveloped gas fields, experts cautioned, would not be able to replace Russian supplies in the short-term.