Israel is about to form an internal panel with two international observers to probe into the navy's deadly raid on a Gaza-bound aid flotilla some two weeks ago, Israeli Prime Minister's Office announced Sunday night.

The Gaza-bound Rachel Corrie aid ship, which is under control of the Israeli navy, approaches southern Israel's Ashdod port June 5, 2010.[Rafael Ben-Ari/Xinhua]

The panel will be headed by Israeli former Supreme Court Justice Yaakov Tirkel, involving in another international law expert and a former army commander. Two foreign observers, Nobel Peace Prize laureate Lord William David Trimble and Canadian former judge advocate general Ken Watkin, will be included in the panel.

The panel will be looking into Israel's naval operation on the flotilla, the actions of the flotilla organizers as well as the legal aspects of Israel's naval blockade on the Gaza strip, local news service Ynet quoted a statement from the Prime Minister's Office as saying.

The Cabinet Secretary Zvui Hauser has been instructed to present the final plan of the establishment of the panel to the cabinet ministers for approval on Monday, Ynet reported.

Israeli navy commandos boarded a pro-Palestinian international aid flotilla on May 31 and clashed with activists on one of the ships, a raid ended with at least nine activists from the flotilla killed and dozens injured. There has been great pressure from the international community on Israel to accept an international inquiry into the events.

The panel is "to provide a credible and independent response for questions raised by countries in the international community regarding the naval event and its compliance with international law norms," Israeli Premier Benjamin Netanyahu said in the statement.

Regarding the call from the international community to lift the siege on Gaza, Netanyahu noted earlier in the day that Israel will not allow free inflow into Gaza.

"The principle guiding our policy is clear -- to prevent the entry of war materiel from entering Gaza and to allow the entry of humanitarian aid and non-contraband goods into the Gaza Strip," the premier said at the weekly cabinet meeting on Sunday morning.