ANKARA Turkey has reached an agreement with Israel to purchase 10 Heron drones from Israel and a deal would be announced within one or two days, Turkish Aerospace Industries (TAI) said on Tuesday.

'We've reached agreement with procurement office. We expect to announce an agreement within a few days,' TAI Chief Executive Muharrem Dortkasli told reporters.

Turkey and Israel signed a deal in 2005 for the supply of the unmanned aircraft, worth $185 million.

Turkish Defence Minister Vecdi Gonul in July denied reports published in the Israeli media that the deal would be cancelled due to the delay in the project.

Speculation about the project's cancellation had mounted amid escalating tensions between regional allies Israel and Turkey, which had sharply criticised Israel's Palestinian policies, especially the Gaza offensive it launched in December 2009.

TAI is partners in the venture to build the Herons with Air Israel Aerospace Industries (IAI) and Israeli defence manufacturer Elbit.