"It was a technical error," Israeli media quoted him as saying during a conference in Tel Aviv.
"It is certainly not a part of Israel's policy," he said. "It is a tragedy that we thoroughly regret."
The Beit Hanun deaths sparked world-wide condemnation and vows of renewed suicide attacks inside the Jewish state by Palestinian militant groups.
Olmert said once again that he was ready to meet with Palestinian president Mahmud Abbas to try to restart the dormant Middle East peace process.
Both Olmert and Abbas -- who last met in an informal setting in Jordan in late June -- have repeatedly said over the past several months that they are ready to hold a meeting, without setting a date.
"I have great respect for Abu Mazen," Olmert said. "He is a Palestinian patriot, not Israeli. He will fight for Palestinian interests like a lion.
"But he is a decent man, he opposes terror. He is under pressure from terror groups and has no power to oppose them and overpower them," he said.
Following the Beit Hanun deaths, Abbas accused Israel of sinking chances for peace.
"You (the Israelis) do not want peace at all. You have destroyed all chances of peace and you should bear all the responsibility," he told reporters in Gaza City following Wednesday's attack.

Copyright AFP (Agence France-Presse), 2006