By Rebecca Harrison

JERUSALEM, Sept 18 (Reuters) - Israeli President Shimon Peres said on Tuesday tensions between the Jewish state and Syria had declined after reports of an Israeli air raid against its neighbour this month.

Peres cautioned against "rumours and speculation" but did not comment during a news conference on reports that Israel may have targeted weapons headed for Lebanon's Hezbollah group or a suspected nuclear site.

"I do believe the nervousness in the relationship between Syria and ourselves is over," Peres told foreign journalists. "Why go back to rumours and speculation when we say clearly we are ready to negotiate directly with the Syrians for peace."

Israel has declined to comment on the reported air strike in Syria.

Israeli Prime Minister Ehud Olmert told a group of reporters on Monday he was willing to enter peace talks with Syria with no preconditions and had a lot of respect for Syrian President Bashar al-Assad.

Syria has said it could retaliate for the Sept. 6 violation of its territory. Damascus has denied reports it may have received North Korean nuclear aid. North Korea has also denied any such cooperation.

The air strike reports followed months in which talks of reviving long-stalled peace negotiations between the neighbours has been mixed with speculation on both sides that the other was preparing a surprise attack.

Negotiations between Syria and Israel collapsed in 2000 without resolving the fate of the Golan Heights, a plateau captured by Israel in 1967 and annexed in 1981 in a move not recognised internationally.

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