Israel's former supreme court chief justice Yaakov Tirkel will be appointed to head an investigation into the navy's raid on a Gaza-bound aid flotilla some two weeks ago, Israeli Prime Minister Benjamin Netanyahu said on Sunday.

The premier confirmed this decision at the opening of the weekly cabinet meeting, but came short of announcing the establishment of the probe panel, local daily Ha'aretz reported.

Local media reported that Israel is considering to forming an internal inquiry panel, with two international observers involved, into the deadly raid on the flotilla, and the Jewish state is going to release the final plan after obtaining green light from the U.S. Obama administration.

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, and to lift its siege on the Gaza strip.

Netanyahu said on Sunday that Israel will not allow free inflow into Gaza.

"The principle guiding our policy is clear, "to prevent 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 cabinet meeting.