Cyprus said on Tuesday that the discovery of natural gas by both Israel and Cyprus in adjoining marine fields leads the two countries into forming a strategic alliance.

In remarks to Cypriot journalists after completing talks with top Israeli leaders during his visit to Israel, Cyprus President Nicos Anastasiades said the two neighboring countries have entered a new era in their relations.

"The factor behind this development is the discovery of hydrocarbons, which dictates cooperation between the two countries. They have to form a strategic alliance which will help them to both benefit from this," Anastasiades said.

Israel is far in front in natural gas exploration and development, having discovered at least 24 trillion cubic feet of natural gas in two marine blocks. Cyprus is in the process of confirming the discovery of about 7.5 trillion cubic feet of gas in a block adjoining one of Israel's gas fields.

Further exploratory drillings are expected soon by an Italian ENI and South Korean Kogas consortium and by French Total firm.

Joint exploitation of gas across the line separating Israeli and Cypriot gas fields was one of the top issues discussed between Anastasiades and Israeli Prime Minister Benjamin Netanyahu on Sunday.

Building closer relations between Cyprus and Israel comes at a time when Turkey and Israel try to mend their relations damaged by the Mavi Marmara incident on May 31, 2010, which killed eight Turkish and one Turkish American pro-Palestinian activists.

However, Israeli officials said the development of Israel-Cyprus relations is not affected by the progress in relations with any other country.

Anastasiades also told an audience at the Tel Aviv University that during his talks in Jerusalem he was told that the relations between Israel and Turkey do not cancel out relations between Israel and Cyprus.

Cyprus has been split into Greek and Turkish-Cypriot sections since Turkey occupied north of the island in 1974, reacting to a coup by Greek army officers. In 1983, the Turkish Cypriot authorities set up a breakaway state, which is only recognized by Ankara.

Turkey has said it will object to gas development by Cyprus as it considers that the natural wealth of the eastern Mediterranean island belongs to both the Greek and Turkish Cypriot communities.

Israeli President Shimon Peres told Anastasiades during a working lunch on Tuesday that Israel is committed to extending its cooperation with Cyprus.

"Israel considers Cyprus as its closest friend both in geographical and political terms. Without Cyprus Israel would be too far away from Europe, with Cyprus it is only 50 minutes away," Peres told Anastasiades in a lunch speech.

In a related development, Anastasiades dismissed a statement by NATO Secretary General Anders Fogh Rasmussen that after solving the Cyprus issue, oil and natural gas drilling can be initiated.

Anastasiades said in a written statement while in Tel Aviv that gas exploration and development within the Cypriot exclusive economic zone is a sovereign right of Cyprus.

He also said that those who try to postpone development of energy deposits within the Cypriot exclusive economic zone do not facilitate in any way efforts to solve the Cyprus problem.