JERUSALEM (Reuters) - Israel will stick to its refusal to apologise to Turkey for killing nine of its citizens on a Gaza-bound ship, an Israeli official said on Wednesday, entrenching a position that Ankara said would kill any prospects for reconciliation. The decision, which the official said Prime Minister Benjamin Netanyahu conveyed to U.S. Secretary of State Hillary Clinton in a telephone call, was made days before the publication of the findings of a U.N. inquiry into the seizure of the Mavi Marmara last year. "As long as Israel does not apologise, does not pay compensation and does not lift the embargo on Palestine, it is not possible for Turkey-Israeli ties to improve," Turkish Prime Minister Tayyip Erdogan, asked about the Israeli comments, told reporters. The so-called Palmer report was repeatedly delayed to allow for Israeli-Turkish rapprochement talks amid concern in Washington at the rift between two countries that had been strategic partners in an increasingly stormy Middle East.