According to the official acknowledgment, Jerusalem and Damascus are holding indirect talks under the auspices of Turkey.

One of the issues Turkey is trying to work out between Israel and Syria as a prelude to direct negotiations is whether a Syrian announcement of ending support for terrorism needs to precede an Israeli guarantee that it will withdraw from the Golan Heights in exchange for peace, Western diplomats said in late April.

According to the officials, one question being discussed in exchanges Turkey has carried between Jerusalem and Damascus over the last few months is what comes first, an Israeli announcement - in some yet to be determined from - regarding withdrawal from the Golan, or a Syrian announcement of ending support for Hamas and Hizbullah.

Israel is also keen on a Syrian commitment to distance itself from Iran as part of any future peace agreement.

Both sides were willing to hold discussions, the official said, but there was no agreement yet on the modalities.

Turkish diplomatic officials meanwhile said no date had yet been set for a visit here by Turkish Prime Minister Recep Tayyip Erdogan's foreign policy adviser Ahmet Davutoglu to discuss the Syrian track.

Prime Minister Ehud Olmert's office, meanwhile, denied reports Monday that a decision had been made that Olmert's chief of staff Yoram Turbowicz would head discussions with the Syrians until a meeting was arranged between Olmert and Syrian President Bashar Assad.

In an interview with Newsweek and The Washington Post last week, the prime minister said Israel was examining the possibility of peace with Damascus, even though Jerusalem was concerned over the Syrian role in the region.

"We are very unhappy with the continued intensive involvement of Syria in the affairs of Lebanon and the lack of a democratic process in electing a new president in Lebanon. We are also unhappy with the continued links between Iran, Syria, Hizbullah and Hamas," he said.

Olmert said Israel was aware of US interests in the region, including in Lebanon.

"I know what our expectations are. I know what the Americans' expectations are. I'm not going to do anything which [is in contradiction] to what my understanding of [what] the fundamental interests of the United States are in this part of the world."

Olmert denied that peace between Israel and Syria would be detrimental to Lebanon.

"This is an attempt to achieve peace between Israel and Syria. And at the same time, to also make sure that the interests of free, democratic Lebanon are well protected. What the ingredients of peace [are] is something that will have to be discussed."

The prime minister rejected reports that US President George W. Bush was blocking peace talks between Israel and Syria.