"We are very far away (from peace deal with the Palestinians). It's not just that it is impossible; I think that in the current climate it is also not practical and simply forbidden. So what's my conclusion? My conclusion is that we definitely need to start preparing Plan B, a long term temporary arrangement. I can say this Plan B exists, it is on the shelf."
"On the apology issue, this borders rudeness and is even beyond rudeness. If anyone has to apologise, it is the Turkish government to Israel for its cooperation with terror entities, supporting terror, supporting the IHH (Foundation for Human Rights and Freedoms and Humanitarian Relief, known by its Turkish acronym IHH), Hamas and Hezbollah. There will be no apology and if there is one, then it will be us waiting for an apology from the Turkish government and not the other way around."
Israel's foreign minister said on Sunday that a peace deal with the Palestinians was "impossible" under current conditions and that Israel shouldn't pursue one.
Avigdor Lieberman told Israeli diplomats that Israel should instead seek a long-term, interim agreement on security and economic matters.
Palestinians have consistently rejected that approach.
Lieberman said the West Bank Palestinian Authority was not legitimate because it has postponed elections.
Peace talks between Israel and the Palestinian Authority broke down in September.
US mediators have not been able to restart them.
Lieberman is known for expressing hard-line views that don't always represent those of Israeli Prime Minister Benjamin Netanyahu.
Netanyahu's office had no immediate comment.
Lieberman also reacted to a statement by his Turkish counterpart, Ahmet Davutoglu, who said on Saturday that his country wanted improved ties with Israel but the Jewish state must apologise and offer compensation for its deadly raid on a Gaza Strip-bound aid flotilla.
Lieberman said the Turkish insistence on apology was "beyond rudeness" and stressed that Israel would not apologise, but that, on the contrary, it was Turkey who should apologise to Israel "for its cooperation with terror entities, supporting terror, supporting the IHH, Hamas and Hezbollah."
The IHH is the Turkish acronym for the Foundation for Human Rights and Freedoms and Humanitarian Relief, who organised the aid flotilla.
Israel and Turkey built strong military and economic ties over the past 15 years, and Turkey became Israel's closest ally in the Muslim world.
Relations between the two soured, however, with Turkey's Islamic-oriented government's increasingly vociferous criticism of Israel's treatment of Palestinians.
They hit an all-time low in May, when Israeli naval commandos killed nine activists from Turkey on board a Gaza-bound ship that tried to breach Israel's naval blockade.
Turkey withdrew its ambassador from Tel Aviv and Turkish leaders denounced Israel repeatedly over the raid.
Turkey has made an Israeli apology and compensation for the victims' families a condition for improved ties.
Israeli commandos claimed they opened fire in self-defence after meeting what they called unexpected resistance when they boarded the ferry carrying aid supplies to Gaza.
Turkish Prime Minister Recep Tayyip Erdogan also wants Israel to end its blockade on the Gaza Strip.
Israel and Egypt blockaded Gaza after the militant Islamic Hamas seized control there in 2007.
Israel wants Turkey to return its ambassador and remove the raid from the international agenda.
High-level Turkish and Israeli officials met in Geneva earlier this month to try to mend fences, after Turkey sent aircraft and firefighters to help Israel battle a wildfire.