Turkey is about to conclude a deal with Israel on "all issues", a Turkish official said on Tuesday, a sign the two former allies may be moving toward a compensation agreement for the killing of 10 Turkish activists by Israeli commandos in 2010.

The two countries have stepped up efforts in recent months to restore a relationship that was severely damaged after an Israeli raid on a Turkish boat, the Mavi Marmara, which had been trying to breach a blockade on the Gaza strip.

The official made the comment at a briefing with reporters in Istanbul. - Reuters