Northern Cyprus' leader said he believes that Southern Cyprus and Israel have begun negotiations over an Israeli military base in the southern part of the island despite the fact that both sides deny reports on the issue.

"They are hiding this. I wouldn't be surprised if [Greek Cyprus] allows Israelis to have a military base," Northern Cypriot President Derviş Eroğlu told a group of journalists visiting him in his presidential palace.

"I think Southern Cyprus wants to use this as a tool in negotiations against us," Hurriyet Daily News quoted him as saying.