Jerusalem - Israel and Turkey have reached an understanding that could lead to the restoration of ties between the two former allies, an Israeli official said Thursday.

Relations between the two countries broke down in 2010 after an Israeli naval raid on a Gaza-bound flotilla that killed eight Turkish citizens and one Turkish-American. In the aftermath of the raid, Turkey became one of the strongest critics of Israeli actions in Gaza.

Israel apologized to Turkey for the deaths and agreed to compensate the victims’ families under a U.S.-brokered arrangement in 2013. But efforts to restore ties faltered amid new Israeli action in Gaza.

The Israeli official, who spoke on condition of anonymity because he wasn’t authorized to speak to the media about the diplomatic talks, said the sides agreed that Israel would compensate the families of the flotilla victims.... Read More: VIN