Israel on Friday deposited $20 million in a bank account run by the Turkish Justice Ministry, as part of a reconciliation deal between the two nations.
A report in Istanbul said that the money is intended for the families of the 10 Turkish victims who were killed during a 2010 raid on the pro-Palestinian flotilla by Israeli commandos.
It said that the incident sent relations between the two former allies into a tailspin.
The report said further that Israel and Turkey repaired their broken ties over the summer, though tensions remain.
It said that notably, Turkey did not send a high level official to the funeral of Israeli president Shimon Peres who died this week.
It said that the next step remains for the sides to appoint ambassadors for the first time since the deaths.
The News Agency of Nigeria reports that Turkey’s government, run by the Islamic Justice and Development Party (AKP), has been broadly sympathetic to the Palestinian cause and the Islamic Hamas movement that controls the Gaza Strip.