JERUSALEM: Israel has cancelled the sale of air surveillance equipment to Turkey over fears that it might fall into the hands of countries hostile to the Jewish state, the Haaretz daily said on Thursday.

The report said that the contract was signed in 2008 with Elbit Systems and worth some $140 million (107 million).

Ynetnews, reporting the same story, said both the defence ministry and Elbit had confirmed the cancellation.

Haaretz's website said the decision was made "out of security concerns, principally in consideration of Turkey's ties with enemy states of Israel, particularly Iran."

It said the defence ministry highlighted that "we do not allow such advanced technology to fall into other hands, in this way the system can fall into enemy hands."

Export of any military equipment or defense technology is subject to ministry approval.

Haaretz said that, when asked about the cancellation, a security official said "ties with Turkey are extremely important to the state, but we have a security responsibility over any product that is given approval for export."

Once-flourishing Turkish-Israeli ties plunged into deep crisis last year when Israeli forces killed nine Turks in a raid on a Turkish ferry, part of an activist flotilla carrying aid to Gaza.