ATHENS (EJP)---Israeli Prime Minister Benjamin Netanyahu, who pays an official two-dfay visit to Greece on Monday, was due to meet with his Greek counterpart, George Papandreou, in the afternoon in the Greek capital.

The first visit by an Israeli Prime Minister to Greece comes after Papandreou's trip to Israel last month.

In July, Netanyahu said Israel and Greece would undergo "a major upgrade in relagions" that would include closer ties in finance, tourism and technology. The Prime Minister’s spokesman Mark Regev said the Athens visit reflects a "new dynamism in Israel-Greek relations."

Ahead of the visit the Greek prime minister, who also holds the foreign ministry portfolio, spoke by telephone with Egyptian President Hosni Mubarak, Palestinian President Mahmoud Abbas and Amr Moussa, secretary general of the Arab League, his office said.

In his previous role as Foreign Minister nearly a decade ago, Papandreou had been an active mediator in Arab-Israeli relations.

Netanyahu was also scheduled to meet with opposition leader Antonis Samaras and other Greek officials before visiting the nearby island of Poros on Tuesday.

The visit comes at a time of deteriorating ties between Israel and Turkey, Greece's neighbour and traditional rival. Relations soured after the Israeli operation against a flotilla of international activists who attempted to break through the naval blockade on Gaza. The incident led Ankara to recall its ambassador. Nine Turkish activists were killed in the raid on the flotilla.

Greek left-wing groups have planned demonstrations in Athens on Monday afternoon, with marches to the Israeli Embassy outside the city centre to protest the flotilla raid and Israel's policies in the Middle East.