Turkey has expelled a senior Hamas official as a step towards an agreement to normalise relations with Israel but the deal reportedly remains some way from being finalised.

A meeting took place last week between Turkish under-Foreign Minister Feridun Sinirlioglu and Israeli Prime Minister Benjamin Netanyahu’s envoy Joseph Ciechanover alongside National Security Advisor Yossi Cohen.

They agreed an outline of measures to restore diplomatic relations after a five-year hiatus. These include Israel’s payment of €18.1 million in compensation to the families of Turkish citizens killed or injured whilst trying to prevent Israeli commandos taking over the Gaza-bound protest ship, the Mavi Marmara, in 2010.

Meanwhile, Turkey will pass legislation to drop current and future cases against IDF personnel involved in the raid, which precipitated the end of diplomatic ties.

Another condition is the expulsion from Turkey of the Hamas official, Saleh al-Aruri, who has been based in Istanbul since 2012 and is thought to direct terror attacks against Israelis in the West Bank, including the high-profile kidnapping and murder of three Israeli teenagers in summer 2014.

Al-Aruri spent fifteen years in an Israeli prison before being expelled to Syria.

Turkey’s media reports that al-Aruri agreed to a “voluntary” departure, following a meeting between Hamas’ political chief, Khaled Mashaal and Turkish President Tayyip Erdogan and Turkish Prime Minister Ahmet Davutoglu last Saturday.

However, Ynet news said that Erdogan is refusing Israel’s demand to close Hamas’ office in Turkey and to end support for Hamas.

Turkish daily Hurriyet says Davutoglu told a political party meeting that “there is progress” in talks with Israel, but “there is still no deal,” especially as Israel is “not yet prepared to lift the blockade on Gaza entirely.”

The paper reported that the two countries were poised to sign a deal to normalize ties shortly, following recent talks in Switzerland. The agreement would also likely include a natural gas deal between Israel and Turkey.

Even before reconciliation talks began, plans to build a pipeline and import natural gas from Israel's vast Leviathan field in the eastern Mediterranean Sea were never shelved, a Turkish source close to the talks told Reuters.

"Even the political authorities did not wish the talks to be suspended. We knew that once the political issue was overcome, the rest of the process would move forward swiftly," the source said.

One of Turkey's top three demands in the talks was ending the blockade on Gaza, which Israel has declined in the past for security reasons. Still, an anonymous Turkish official said there had been progress on this issue as well.

"There is a breakthrough regarding the blockade," the official said. "We are nearing a final deal in talks with Israel. We don't think it will be long."

According to a report in Turkish newspaper Daily Sabah, the deal will likely be signed before the end of the month, along with a reported easing of the Israeli blockade on the Gaza Strip.