A report on the 2010 Free Gaza flotilla, postponed Wednesday due to stalemated talks between Israel and Turkey, contains harsh criticism against both states but insists the naval blockade is legal, Israeli sources told Ynet.

Deputy Prime Minister Moshe Ya'alon returned recently from the US, where he met with Turkish representatives over the UN-appointed inquiry committee on the flotilla. It was then reported that the Palmer report on the flotilla had been postponed indefinitely due to disagreements between the two states.

Receive Ynetnews updates directly to your desktop



Israel's Response FM won’t apologize to Turkey Moran Azulay Avigdor Lieberman says extending official apology to Ankara over tragic events of first Gaza flotilla humiliating to Jerusalem FM won’t apologize to Turkey

Turkey is concerned over some of the clauses in the delayed report, which accuse the state of having ties with the IHH as well as direct involvement in the flotilla.

But the Palmer report also has criticism towards Israel, despite determining that the blockade does not violate international law. It says the IDF acted "too soon" and with excess force against the activists on board the Marmara vessel.

Israel has rejected this critique, claiming the IDF had no choice but to conduct the raid in such a manner.

In addition, Turkish Foreign Minister Ahmet Davutoglu stressed Wednesday that Ankara would continue to demand an apology and compensation for the nine casualties in the May 31 IDF flotilla raid.

Earlier Foreign Minister Avigdor Lieberman said he does not believe Israel should offer such an apology. "There are some things I'm willing to discuss and some things I'm not willing to discuss. I will not have an apology harm Israel's national dignity and I will not see IDF soldiers humiliated," he said.

But Turkey remains adamant. "We have been saying the same thing since last year. Israel owes an apology and compensation. This is our principled stance on this matter," he said.

Davutoglu added that the talks between Israel and Turkey constitute nothing out of the ordinary. "It's natural for the authorities in Israel and Turkey to hold talks over Turkey's demands," he said.

Meanwhile, Prime Minister Benjamin Netanyahu also addressed relations between the two states during a press conference in Romania Wednesday, saying he would like an improvement in this field.

He said Israel was taking "practical steps" to achieve this aim.