Turkish prime minister Tayyip Erdogan said today that economic sanctions against groups backing Kurdish rebels were not yet in force.
He also denied reports that its airspace has been closed to flights to and from northern Iraq.
Yesterday, Turkey's cabinet approved unspecified economic sanctions against groups deemed to support the separatist Kurdish PKK in a move widely seen as targeting Masoud Barzani's autonomous Kurdish administration in northern Iraq.
NTV commercial television said earlier today, these included a ban on flights between Turkey and northern Iraq.
Turkey has massed up to 100,000 troops along its border with Iraq, backed up by tanks, artillery and aircraft, in preparation for a possible large-scale military incursion into northern Iraq. Washington says the move could destabilise the wider region.
Ankara accuses Barzani of providing shelter and support to militants of the outlawed Kurdistan Workers Party (PKK) who use mountainous northern Iraq as a base from which to attack security forces in southeast Turkey.
Diplomats say Turkey may hold fire on both sanctions and major military action to see whether planned talks with US Secretary of State Condoleezza Rice in Ankara on Friday, and further discussions between Mr Erdogan and US President George W. Bush in Washington next Monday, yield any results.
Turkey blames the PKK for the deaths of nearly 40,000 people since the group began its armed campaign for an ethnic homeland in southeast Turkey in 1984. The United States and European Union, like Turkey, brand the group as terrorist.