"Discussions took place with the citizen Jamal Khashoggi during his presence in the consulate of the kingdom in Istanbul by the suspects (that) did not go as required and developed in a negative way, leading to a fistfight".
But who are these two men? Saudi officials have roundly denied that Prince Mohammed had any involvement.
Turkish officials have previously said he was deliberately killed inside the consulate and his body dismembered and say they have audio and video evidence to prove this.
His disappearance has been shrouded in mystery and tipped Saudi Arabia into one of its worst global crises.
Turkish officials have coordinated sustained leaks of information to local and USA media that suggest Khashoggi was tortured and murdered and his body dismembered with a bone saw.
Turkish media also claim they have identified a team of 15 suspected Saudi agents who flew in and out of Istanbul the day of the disappearance.
"Saudi Arabia has been a great ally, but what happened is unacceptable", the president said.
The case has also created a rift between the President Donald Trump's administration and some members of the U.S. Congress, including Republican Senator Lindsey Graham of SC who has explicitly accused Prince Mohammed of ordering Khashoggi killed.
While, Democratic Senator Jack Reed, the Ranking Member of the Senate Armed Services Committee, said the Saudis were still not forthcoming with the truth.
They also expressed their condolences to Khashoggi's family and friends, "whose fears have now been sadly proven true".
In the wake of the Saudi admission, the freedom-of-expression advocacy group PEN said, "The admission by Saudi authorities that Jamal Khashoggi was murdered in their custody plainly exposes all their previous claims about his fate as flagrant lies".
Mr Chishti told Channel 4 News: "The role that I had was with regards to an independent think tank".
Mr. Castro, appearing on CNN, floated the conspiracy that President Trump's White House target Mr. Khoshoggi in alliance with Crown Prince Muhammed bin Salman, the country's 33-year-old de facto ruler. It depends on the conclusions from the Turkish investigation, said Butter.
Speaking to reporters in Scottsdale, Arizona, ahead of the Saudi announcements, Trump said it was too early to say what the consequences for the incident might be, but that the US Congress would be involved in determining the American response.
Bahrain, in an apparent reference to the case, said Saudi Arabia would "remain a state of justice, values and principles".
On Friday, investigators questioned staff and explored whether his remains could have been dumped outside Istanbul after his suspected killing, Turkish media and a security official said.