Citing unnamed Western diplomats briefed on the ongoing negotiations with Ankara, the daily said Turkey had yet to respond to the Israeli offer. (Agencies)
Once-close relations between the two nations fell apart after Israeli commandos killed nine Turkish nationals during a botched pre-dawn raid on a six-ship flotilla seeking to break Israel's naval blockade on Gaza in May 2010.
The assault provoked a major diplomatic crisis between the former regional allies, with Ankara demanding a formal apology and compensation for the families of the victims.
Talks finally began in March 2013 after Israel extended a formal apology to Turkey to get relations back on track following two-level intervention by US President Barack Obama.
The talks stalled for several months but were revived in December when Israeli negotiators travelled to Istanbul and Turkey lowered its demands for compensation, Haaretz said.
Western diplomats quoted by the paper said Ankara had demanded USD 30 million, but Israel was initially willing to give only USD 15 million.
Prime Minister Benjamin Netanyahu later decided to up Israel's offer to USD 20 million, with an extra USD 3 million available ‘if necessary to secure and agreement’, the paper said.
The funds will not be paid directly to the families of the dead and the wounded but will be deposited in a humanitarian fund and distributed to them in accordance with defined criteria, it said.
Netanyahu's office refused to comment on the report.
Citing unnamed Western diplomats briefed on the ongoing negotiations with Ankara, the daily said Turkey had yet to respond to the Israeli offer.