Israel and Turkey have reached a preliminary agreement to normalize relations, including the return of ambassadors to both countries, an Israeli official said on Thursday.

The deal was reached during a recent meeting in Switzerland between the incoming head of Israel's Mossad intelligence agency, Yossi Cohen, Israeli envoy Joseph Ciechanover and Turkish foreign ministry under-secretary Feridun Sinirlioglu, the official said, speaking on condition of anonymity.

A spokesman for Israeli Prime Minister Benjamin Netanyahu declined comment. A Turkish official confirmed that talks had taken place but denied any agreement had been reached, adding that efforts to normalize relations were continuing.