Since relations warmed up in 2002, Croatia and Israel have exchanged ministerial as well as presidential visits, but the two countries' prime ministers have not exchanged visits.
Sanader is on a two-day visit at the head of a Croatian delegation including Deputy PM Damir Polancec, Culture Minister Bozo Biskupic, and Science, Education and Sports Minister Dragan Primorac.
Today the Croatian delegation had separate meetings with the chairman of the Israeli National Security Council, Gior Eiland, and Deputy PM Shimon Peres.
"There are no outstanding political issues, but we want to strengthen economic cooperation," Sanader told Croatian reporters after meeting Peres. He said the two countries would strengthen ties by bringing Israeli tourists to Croatia and Croatian pilgrims to Israel.
"There are numerous areas in which to advance cooperation and science is one of the most important. Israel has very advanced technology, its scientists are among the best in the world and we would like to use this," Sanader said.
He added he admired everything Israel had made with the desert. "The Irish miracle is often mentioned in Europe, but one could likewise speak about the Israeli miracle. (Israel) bases its progress on knowledge."
Sanader said that at the start of his term, Science Minister Primorac was entrusted with deepening ties with Israel to bring Israeli experts to Croatia with a view to establishing direct cooperation on as many projects as possible.
Apart from bilateral issues, today's talks addressed the situation in the Middle East and Southeast Europe, as well as Croatia's way to European Union membership.
Deputy PM Peres said Croatia-Israel relations were constantly improving and that one could feel the Israeli people's sympathy towards Croatia and its people.
"You are small just as we are, you have problems like we do, you have managed to overcome a difficult past and strive towards a more beautiful future, like we do," he told the press, underlining that the two countries and the two peoples were connected by a natural affinity.
Asked about economic cooperation, Peres said that today the economy was based solely on science and that the economy of today was in fact science.
"I am glad to see that you intend to build good and close relations with Israel in science, which I think is a very good idea," Peres said.
Sanader said Croatia fully supported PM Ariel Sharon's decision on the withdrawal from Gaza, adding that the decision which in fact implemented an international peace plan affected the Israeli political scene. The withdrawal project is in deep crisis due to clashes between the Israeli army and those protesting against the withdrawal.
"The number of those opposing the plan is growing, but I am confident that it is the only way and that Prime Minister Sharon will have enough strength to carry it through," said Sanader, adding that "peace has its price, but it's the only possible solution to this crisis".