The Palmer report on the 2010 Gaza flotilla, expected to be published on July 7, has been delayed indefinitely due to disagreement between Israel and Turkey in talks, the Xinhua news agency reported Wednesday.

The impasse centers on Turkish concerns over clauses in the report accusing Ankara of having ties with the IHH as well as direct involvement in the flotilla.

Ankara also continues to demand Israel apologize for the deaths of 9 Turkish nationals who were killed when they tried to lynch members of Israel's Shayatet-13, or naval commando, who boarded their vessel in accordance with international maritime law.

Israel's Foreign Minister Avigdor Lieberman has maintained Israel will only express 'sorrow' over the incident, but will not apologize.

"There are some things I'm willing to discuss and some things I'm not willing to discuss. I will not have an apology harm Israel's national dignity, and I will not see IDF soldiers humiliated," he said.

But Turkey remains adamant that Israel apologize.

"We have been saying the same thing since last year. Israel owes an apology and compensation. This is our principled stance on this matter," Turkish foreign minister Ahmet Davutoglu said.

"It's natural for the authorities in Israel and Turkey to hold talks over Turkey's demands," he added.

Prime Minister Benjamin Netanyahu addressed Israel-Turkey relations during a press conference in Romania Wednesday, saying Israel was taking "practical steps" to achieve this aim.