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Israel and Turkey reached agreement to normalize ties, senior officials from both countries said, to end a rift over the Israeli navy's killing of 10 Turkish pro-Palestinian activists who tried to sail to the blockaded Gaza Strip in 2010.

According to Reuters reporthttp://www.reuters.com/article/us-israel-turkey-idUSKCN0ZC0YF, a formal announcement on the restoration of ties and the details of the agreement were expected on Monday at 1000 GMT by Israeli Prime Minister Netanyahu in Rome, and Turkish Prime Minister Binali Yildirim in Ankara.

"We reached an agreement with Israel to normalize bilateral relations on Sunday in Rome," a senior Turkish official said, describing the agreement as a "diplomatic victory" for Turkey, although Israel has not accepted to lift the Gaza blockade, one of Ankara's three conditions for an agreement.

Israel, which had already offered its apologies - one of Ankara's three conditions for a deal - for its lethal raid on the Mavi Marmara activist ship, agreed to pay out $20 million to the bereaved and injured, the Israeli official said in a briefing to Israeli reporters traveling with Netanyahu.

The source details, that under the deal, Turkey will deliver humanitarian aid and other non-military products to Gaza and carry out infrastructure projects including residential buildings and a hospital in the area, the senior Turkish official said. Concrete steps will be taken to address the water and power crisis in the city, reads the report.