Ankara (ANTARA News/Reuters) - Turkey`s prime minister said on Friday it was "unthinkable" to normalise ties with Israel unless it apologised for a bloody raid on a Turkish ship bound for Gaza last year and lifted a blockade on the Palestinian territory.

In a speech to parliament to unveil his new government`s programme, Prime Minister Tayyip Erdogan gave no sign of softening its terms, although there have been reports in recent weeks that the two sides have been holding secret talks to mend fences.

Ankara has repeatedly demanded Israel apologise and pay compensation for the killing of nine pro-Palestinian Turkish activists when Israeli marines seized a Turkish ship bound for the coastal strip last year.

"Normalisation of relations between the two countries is unthinkable unless Israel apologises for this illegal act which is against all international law and values, pays compensation to the relatives of those who lost their lives in this atrocious event and lifts the embargo on Gaza," Erdogan said, to the applause of his AK Party lawmakers.

An Israeli official told Reuters on Thursday a U.N. report on the seizure was due to be published on July 27, after delays to enable further talks between Israel and Turkey.

The official, speaking on condition of anonymity, declined to discuss the findings of the committee set up by U.N. Secretary-General Ban Ki-moon and chaired by former New Zealand premier Geoffrey Palmer, saying only that they had been finalised.

But Israeli Finance Minister Yuval Steinitz said earlier that previous drafts of the Palmer report indicated the panel would rule mostly in favour of Israel.

"From what we understand, the report justifies the (Gaza) blockade. It says the blockade is legitimate, that Israel took legitimate steps," Steinitz, who sits in Prime Minister Benjamin Netanyahu`s eight-member inner council, told reporters.

Erdogan, who won re-election last month, said in his speech on Friday that Turkey will be "closely following" all international investigations into the raid.

Israel says the blockade is warranted to prevent arms reaching the Gaza Strip`s ruling Hamas Islamists, who are hostile to the Jewish state.

Palestinians and their supporters, including Turkey, see it as illegal pressure on the heavily aid-dependent coastal strip. (*)

Editor: Kunto Wibisono
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