EILAT, Israel – Israeli Prime Minister Ehud Olmert said on Thursday peace talks between Israel and Syria, now mediated by Turkey, will have to be conducted face-to-face 'very soon'.

'With the Syrians, we are talking seriously and in my estimation very soon the negotiations will have to be direct. They will not be able to continue in the mode in which they are currently being held,' Olmert told an economic conference in the southern Israeli resort city of Eilat.

Olmert made his comments as a third round of indirect talks between Israel and Syria came to a close in Turkey on Thursday.

A Turkish government source told Reuters that Israel and Syria have agreed to hold a fourth round of indirect talks in late July. During that meeting, the sides will decide whether to move to direct talks starting in August, the source said.

'The problems are less complex than they appear,' Olmert said without elaborating. He said a peace deal with Syria would have wide-ranging implications for Israel and the region.

'I think the strategic significance of such a move cannot be ignored,' Olmert said.