Mr Erdogan visited al-Aqsa Mosque, known to Jewish people as Temple Mount
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Turkish Prime Minister Recep Tayyip Erdogan has arrived in Ramallah for talks with Palestinian leaders during his visit to the Middle East.
Earlier, he visited Jerusalem's al-Aqsa Mosque and is later expected to lay a wreath at the grave of Yasser Arafat.
His visit to the West Bank follow talks with his Israeli counterpart Ariel Sharon. Both say the visit could help the Middle East peace process.
Turkey is seen as Israel's only friend in the Muslim world.
The two states have strong military and economic ties.
However, Mr Erdogan last year strongly criticised the treatment of the Palestinians by Israel.
During talks with Palestinian president Mahmoud Abbas, he is expected to offer assistance to the Palestinians in revitalising the Gaza Strip, following the planned withdrawal of Israeli troops and settlers later this year.
It was Mr Erdogan's first visit to Israel since taking office two years ago and only the second by a Turkish premier.
Ramallah trip
Mr Sharon said the two leaders had agreed to establish a prime minister-level hotline to share intelligence.
"We were very impressed by his offers and suggestions... I intend to take full advantage of this attempt to advance diplomatic efforts in the Middle East," Mr Sharon said.
Mr Erdogan said: "I came here to contribute to the peace process in the Middle East. We are ready and prepared to contribute whatever is asked of us."
Mr Erdogan had earlier laid a wreath at Israel's Yad Vashem Holocaust memorial in Jerusalem and met President Moshe Katsav.
The premiers said the visit would boost Middle East peace steps
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Israeli Foreign Minister Silvan Shalom told Israel radio: "Turkey can be a bridge for our relations with the Arab world.
"Moderate Islam can hold a dialogue with Israel on joining forces to create a better future for all peoples of the region."
Bilateral ties were strained last year when Mr Erdogan made a reference to "state terrorism" in relation to Israel's crackdown on the Palestinians.
The BBC's Jonny Dymond in Istanbul says the governing party in Turkey has a large Islamist constituency that has little love for Israel.
Our correspondent says that although Mr Erdogan is cooler towards Israel than some of his predecessors, a relationship that still strikes many as a curious one remains intact.
Mr Erdogan had earlier hosted a meeting in Istanbul of foreign ministers from eight neighbouring countries, including Iraq.
His visit to Israel is the first there by a Turkish premier since Tansu Ciller in 1994.