Israel said on Thursday that Syria must distance itself from Iran and cut ties to groups like Hezbollah and Hamas if wants to conclude a peace with the Jewish state.

A day after both countries announced the start of indirect talks, Israeli Foreign Minister Tzipi Livni said in English: "Israel wants to live in peace with its neighbors but Syria also needs to understand that it needs also full renunciation of supporting terror -- Hezbollah, Hamas and of course Iran." Continuing her remarks to reporters in Hebrew, Livni called Syria's ties with Iran "problematic," referring to the Jewish state's accusations that the Islamic Republic sponsors Lebanese guerrilla group Hezbollah and the Palestinians of Hamas.

"The Syrians also need to understand that ... they must distance themselves completely from their ... problematic ties with Iran," she said in Hebrew before the start of a meeting with visiting French Foreign Minister Bernard Kouchner.

In Wednesday's first confirmation of negotiations between the long-time enemies in eight years, Israel and Syria said they had launched indirect peace talks mediated by Turkish officials in Istanbul.

The United States, Israel's key ally, said it did not object to talks between Israel and Syria and was not surprised by the development.

But the hostility of the present U.S. government to Syria and to its allies in Iran and Lebanon has been cited as a barrier to a final deal under which Israel has said it could hand over the Golan Heights.