Two Israeli settlers were murdered as they took a walk in the West Bank today, sparking fears their deaths may have been a revenge attack by Palestinian extremists.

Middle East peace plans stalled again today after the chief Palestinian negotiator insisted there would be no talks with Israel until a deadline was set for establishing an independent state.

The Palestinians are ready to yield parts of the West Bank to Israel if compensated with an equal amount of Israeli territory, according to the lead Palestinian negotiator.

The rival Hamas and Fatah parties have frozen talks on forming a Palestinian unity government, Fatah officials said – a new setback in efforts to form a more moderate coalition acceptable to the West.

SAUDI ARABIA and other Arab states are expected to speed money within days to the Palestinian Authority to help keep it afloat after Israel halted its tax payments.

Militant Islamic group Hamas risked world isolation today after the movement’s shock victory in Palestinian parliamentary elections.

ISLAMIC militant Hamas has won a landslide victory in Palestinian parliament elections, winning 76 seats in the 132-member parliament.

The Islamic militant Hamas won a landslide victory in Palestinian parliament elections, winning 76 seats in the 132-member parliament, election officials announced today.

The top Hamas leader today told Mahmoud Abbas that the Islamic militant group was ready for a political partnership after trouncing the Palestinian leader’s Fatah Party in legislative elections – a shocking upset sure to throw Middle East peacemaking into turmoil.

About two dozen masked Palestinian gunmen today took over election offices in the Gaza town of Khan Younis, trying to prevent the ruling Fatah party from registering a new list of candidates for January parliamentary elections.

The Palestinians’ ruling Fatah Party has split, with young activists forming their own group for the January parliamentary election.

Jordan’s King Abdullah will visit the West Bank on Monday, the office of Palestinian leader Mahmoud Abbas announced.

Israeli Prime Minister Ariel Sharon said today he would not meet with Palestinian leader Mahmoud Abbas unless the Palestinian Authority takes steps to stop militants from attacking Israelis.

The official investigation into the death of Yasser Arafat turned up inconclusive, Palestinian Prime Minister Ahmed Qureia said today.

Palestinians will not open their border with Egypt unilaterally, Palestinian leader Mahmoud Abbas said today, answering Israeli concerns and illustrating how much the poverty-stricken seaside territory remains dependent on its Jewish neighbour, despite Israel’s pullout.

PALESTINIAN prime minister Ahmed Qureia surveyed the wreckage of Israel’s former Gaza Strip settlements yesterday after his government was handed control of the whole territory.

Israeli police today put forces on one of the highest alert levels as a stand-off developed between thousands of security forces and Gaza withdrawal opponents determined to march to the coastal area despite a ban.

Palestinian gunmen challenged the authority of their own leaders in a West Bank refugee camp yesterday, firing weapons and setting off a bomb as Prime Minister Ahmed Qureia delivered an emotional lecture on the need to end internal violence.

Palestinian gunmen opened fire at a sports club in the West Bank refugee camp of Balata this morning during a visit by Palestinian Prime Minister Ahmed Qureia, but Qureia wasn’t hurt, witnesses said.

THE arrest of 52 Islamic Jihad militants and a missile strike in the Gaza Strip overshadowed the first meeting yesterday between the Israeli and Palestinian leaders since a February truce.

Israeli Prime Minister Ariel Sharon told Palestinian leader Mahmoud Abbas that Israel would hand over two more West Bank towns and consider releasing more prisoners if the Palestinians take step to end violence, officials said today.

Israel’s military chief today said that Palestinian attacks on Israeli troops trying to evacuate Gaza Strip settlements this summer could cause a temporary delay in the pullout, but would not force it to be canceled.

Brazilian soccer star Ronaldo received a warm welcome in the Palestinian city of Ramallah today, with hundreds of residents jostling to get a glimpse of their hero during a goodwill visit that left even the normally serious Palestinian prime minister grinning like an excited schoolboy.

ISRAELI Defence Minister Shaul Mofaz yesterday recommended delaying Israel's withdrawal from the Gaza Strip, the strongest indication yet that the summer pullout will be pushed back as Israel tries to prepare for the operation.

Flatbed trucks rumbled out of the Gaza Strip today carrying office furniture, computers and uniforms out of an army base, the Israeli military’s first concrete step toward a planned pullout this summer.

ISRAEL'S parliament yesterday swept aside another potential obstacle to Prime Minister Ariel Sharon's plan to withdraw from the Gaza Strip, overwhelmingly rejecting a proposal for holding a national referendum on the pull-out.

Israel’s parliament today swept aside another potential obstacle to Prime Minister Ariel Sharon’s plan to withdraw from the Gaza Strip, overwhelmingly rejecting a proposal for holding a national referendum on the pullout.

Israeli troops today killed an armed Palestinian militant who was planning attacks on Israelis, during a raid on his West Bank home, the army said, in a development that could further destabilise a fragile truce.

Palestinian leader Mahmoud Abbas today pledged to track down and punish militants responsible for a suicide bombing that killed four Israelis at a Tel Aviv nightclub, and Palestinian security officials pointed to the Lebanese guerrilla group Hezbollah as the apparent mastermind.

The Palestinian parliament averted a crisis tonight by approving a new 24-member Cabinet dominated by academics after a major move toward long-promised government reform.

The Palestinian parliament today approved a cabinet dominated by professional appointees, including nearly half with doctoral degrees, in a major move toward long-promised government reform.

Palestinian leader Mahmoud Abbas intervened today to end a political crisis over the formation of a new cabinet, after it became apparent the turmoil could bring down his prime minister.

The Palestinian prime minister had trouble securing a parliamentary majority for his proposed Cabinet today, despite promises that he would replace corruption-tainted politicians.

PALESTINIAN Prime Minister Ahmed Qureia yesterday promised a drastic overhaul of his cabinet, signalling the start of long-sought reform, after his original lineup of political old-timers prompted an angry outcry and threats of a no-confidence vote.

Palestinian Prime Minister Ahmed Qureia promised a drastic overhaul of his cabinet today, after his original lineup stacked with political old-timers prompted an angry outcry.

The Israeli parliament easily passed Prime Minister Ariel Sharon’s contentious plan to pull out of Gaza and part of the West Bank, approving compensation of hundreds of thousands of shekels to families of settlers to be evacuated.

LEADERS of Palestinian Islamic militant factions are in Cairo for ceasefire talks with the Egyptians, days before Egypt is to host talks between Israeli Prime Minister Ariel Sharon and Palestinian leader Mahmoud Abbas.

Israel will transfer security control over several West Bank towns to the Palestinians in coming days, Israel’s defence minister said today, hours after he met with a Palestinian negotiator to work out the details of Israel’s troop redeployment.

Islamic militant group Hamas joined in the mood of optimism in Gaza today and signalled it would suspend rocket attacks on Israel.

Israel decided to delay a major military offensive in the Gaza Strip today, to give new Palestinian leader Mahmoud Abbas more time to act against militants.

Israel’s prime minister Ariel Sharon has cut all contact with newly-elected Palestinian leader Mahmoud Abbas in a startling U-turn, saying he must halt terror attacks if he wanted peace talks.

Israeli Prime Minister Ariel Sharon cut all contact with the newly elected Palestinian leader today, promising the silence would continue until Mahmoud Abbas moves to halt militant attacks.

Israeli prime minister Ariel Sharon and incoming Palestinian Authority president Mahmoud Abbas have talked about a future meeting, signalling an end to the diplomatic freeze and possible new peace talks.

PALESTINIAN Prime Minister Ahmed Qureia yesterday poured scorn on British Prime Minister Tony Blair’s peace initiative yesterday - throwing into doubt a London conference that Israel has already said it will boycott.