Senior officials from Israel and Turkey are discussing compensation payments for the victims of a 2010 Israeli raid on a Gaza-bound aid flotilla — a key Turkish demand in the restoration of ties between the two former allies.

Israeli and Turkish negotiators met in the Turkish capital on Monday for talks that they hope will help start the process of restoring full diplomatic relations.

Relations between the two soured after the raid that killed eight Turks and a Turkish-American. Last month, Israel apologized for the raid and Turkish and Israeli leaders agreed to restore ties.

Turkey has since warned that this would be dependent on compensation and on Israel's ending restrictions against the Palestinians.