Israeli Prime Minister Benjamin Netanyahu told a delegation of U.S. representatives on Monday that a reconciliation deal between Turkey and Israel could be finalized very soon, according to a report in the Israeli Haaretz daily which cited sources from the meeting.

According to the report, Netanyahu said that Turkey and Israel will not immediately return to the level of normalization seen 10 years ago but that he is still "very optimistic" about future relations between the two countries. The prime minister reportedly said that Turkey and Israel would benefit greatly from the normalization process.

Still, the selection of hard-right Yisrael Beitenu Chairman Avigdor Lieberman in the Israeli cabinet worries the U.S. and Turkey. The policies of the nationalist minister, known for his harsh stance on Palestinians, worry officials in Ankara who fear that Lieberman will undermine normalization talks. Officials in Washington believe that his policies could dissuade Israel from a two-state solution.

The last few months have seen solid progress made in terms of restoring bilateral relationships which had been stalled ever since the Mavi Marmara raid in 2010. The latest reports indicate that Israel and Turkey have managed to reach agreements on 90 percent of all issues raised during diplomatic negotiations.

Turkish and Israeli officials first met openly in December 2015 and were able to reach a preliminary agreement to normalize relations which included the mutual return of ambassadors after Israel agreed to pay $20 million in compensation to the relatives of the victims in the Mavi Marmara raid.During a meeting in early February 2016, officials discussed easing the Gaza blockade rather than complete lifting it; whereas, Ankara wants to see the reconstruction of Gaza City begin.

The latest diplomatic crisis between Turkey and Israel occurred in May 2010 when Israeli commandos boarded the Mavi Marmara over international waters and stopped the civilian vessel as it was carrying humanitarian aid to Palestinians in efforts to break the Israeli blockade on Gaza. The Israeli government took a step towards reconciliation on March 24, 2013, when Netanyahu, under the encouragement of U.S. President Barack Obama, apologized for the mishandling of the raid during a conference call with then-Prime Minister Recep Tayyip Erdoğan. While closed-door reconciliation talks have continued since then, the agreement has been delayed due to Israel's attack on Gaza in 2014 as well as political elections in Turkey.