Ron Dermer, an adviser to Prime Minister Benjamin Netanyahu, told Israel Radio that Jerusalem is searching for a compromise that “both sides can live with” — though official positions remain far apart.

Turkey withdrew its ambassador from Tel Aviv after Israel killed nine Turkish activists on board a ship that aimed to break Israel's blockade on the Gaza Strip.

Once allies, Israel-Turkish relations hit bottom as Turkish leaders denounced Israel repeatedly over the raid.

Turkish Prime Minister Recep Tayyip Erdogan has demanded an apology and compensation for the families of the dead.

Israel insists its naval commandoes were attacked and acted in self-defense.

Last Friday, Turkey sent aircraft and firefighters to help extinguish a huge forest fire in Israel. In the wake of the gesture, Israel and Turkey began meeting in Switzerland in effort to bridge their gaps, according to Israeli officials.

Dermer said Israel wants Turkey to return its ambassador and remove the raid from the international agenda.

Netanyahu also wants to legally protect the soldiers and commanders who participated in the raid, he said. Israeli leaders and military commanders have faced arrest in Europe under «universal jurisdiction» laws after suits were filed by pro-Palestinian activists over Israeli military operations.

One of Turkey's main demands, that Israel apologize for the flotilla raid, brought stiff objections from Israel's foreign minister.

An Israeli Foreign Ministry official quoted Foreign Minister Avigdor Lieberman as saying “an apology to Turkey is like surrendering to terror. If anyone needs to apologize, it's Turkey. It should pay compensation for the support of terrorists.”

Erdogan told reporters Tuesday he also expects Israel to end its blockade on the Gaza Strip. Israel and Egypt blockaded Gaza after the Hamas seized control there in 2007.

The flotilla was trying to break the blockade, though Israel charged it was an orchestrated provocation.