Israeli Prime Minister Ehud Olmert told a powerful parliamentary panel today that the list of prisoners the Palestinians want freed in exchange for a captured Israeli soldier “creates expectations we cannot meet,” a meeting participant said.

Holding photographs of relatives held in Israeli jails, several thousand people gathered outside the Red Cross office in Gaza City today to call for the release of Palestinian prisoners.

Palestinian President Mahmoud Abbas and Israeli Prime Minister Ehud Olmert will meet on Sunday, an aide to the Israeli leader confirmed today - keeping their promise to US Secretary of State Condoleezza Rice to hold regular talks.

Talks today between Israeli officials and a top Egyptian mediator failed to bring the release of an Israeli soldier captured by Hamas-linked militants last June any closer, an Israeli official said.

The Egyptian official negotiating an Israeli-Palestinian prisoner swap plans to deliver to Israel today a Hamas demand that Israel free 1,400 detainees in exchange for a soldier held since June, Palestinian officials said.

Hamas yesterday edged toward recognition of Israel, a key international demand, in an agreement worked out by Hamas and Fatah leaders in an Israeli prison, mentioning a Palestinian state in the West Bank and Gaza while refusing to renounce violence.

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.

One month before Palestinians head to the polls to choose a new parliament, a poll released today indicated the militant group Hamas would earn the greatest number of seats.

Israeli troops will impose an “aerial siege” on parts of Gaza, shooting from helicopters or gunboats at anyone entering a “no-go zone” near the border, as part of a new campaign against Palestinian militants firing rockets at Israeli towns, a senior defence official said today.

The Hamas militant group won local elections in the West Bank’s largest cities, according to preliminary results released today, dealing a harsh blow to the ruling Fatah party just six weeks ahead of a parliamentary poll.

The Hamas militant group won local elections in the West Bank’s largest cities, according to preliminary results released today, dealing a harsh blow to the ruling Fatah party just six weeks ahead of a parliamentary poll.

THE ruling Palestinian Fatah Party negotiated feverishly yesterday, trying to persuade young activists from breaking away to form their own faction, a split that might boost the prospects of Hamas militants in parliamentary elections next month.

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

SAID BILAL has four sons in Israeli jails, two of them serving life terms, and is anxiously awaiting word from yesterday’s summit on the fate of Palestinian prisoners.

Jailed Palestinian uprising leader Marwan Barghouti was transferred to the general population in his southern Israeli prison today, an Israeli official said, ending almost three years of separation from other Palestinian prisoners.

Palestinian presidential election front-runner Mahmoud Abbas paid tribute to countrymen killed in fighting with Israel, with gunmen firing in the air during a large anniversary rally of the ruling Fatah movement today.

Israel was releasing 159 Palestinian prisoners today, as a gesture to the new Palestinian leadership and as part of a swap with Egypt.

Interim Palestinian leader Mahmoud Abbas pledged in his first official campaign speech today to fulfill Palestinian dreams of statehood.

Palestinian militants found a way around the heavy fortifications at the Israeli-run crossing point between Egypt and Gaza – tunnelling under the base and blowing it up with more than a ton of explosives, killing five soldiers.

Imprisoned uprising leader Marwan Barghouti is dropping out of the election to replace Yasser Arafat as head of the Palestinian Authority, associates said tonight.

Two opinion polls published today predicted a tight race for Palestinian president between interim leader Mahmoud Abbas and his jailed challenger, Marwan Barghouti, while a third survey gave Abbas the advantage.

Interim Palestinian leader Mahmoud Abbas is emerging as the front-runner in presidential elections, with an 18-point lead over jailed uprising leader Marwan Barghouti, according to the first poll on how Palestinians will vote on January 9.

ISRAELI Prime Minister Ariel Sharon said yesterday he planned to replace his minority government with a broad coalition to push through his Gaza withdrawal plan.

Ten candidates have qualified to run in next months elections to replace Yasser Arafat as head of Palestinian Authority, officials said today.

Uprising leader Marwan Barghouti, serving life in an Israeli prison, has decided to run for Palestinian president, reversing an earlier decision and throwing Palestinian politics into disarray.

PALESTINIAN officials said yesterday that jailed uprising leader Marwan Barghouti will not run for president in upcoming Palestinian elections.

Jailed uprising leader Marwan Barghouti – serving life in an Israeli prison - said tonight he will not be a candidate in the Palestinian presidential election.

JAILED uprising leader Marwan Barghouti threw Palestinian politics into turmoil last night when he let it be known from his Israeli prison cell that wants to succeed Yasser Arafat.

Jailed uprising leader Marwan Barghouti will seek the presidency of the Palestinian Authority, an associate said today.

The ruling Fatah movement chose interim Palestinian leader Mahmoud Abbas as its candidate for January’s presidential election last night, but Fatah rebels said they would challenge the decision.

Interim Palestinian leader Mahmoud Abbas held talks with rival Palestinian factions today on sharing power and halting attacks on Israel ahead of a presidential election in January.

Marwan Barghouti, a Palestinian uprising leader jailed by Israel who is perhaps the strongest candidate to oust Yasser Arafat’s old guard of politicians, will run in presidential elections, a close aide said today.

MAHMOUD ABBAS, a former prime minister and a veteran peace negotiator, was elected chairman of the Palestine Liberation Organisation yesterday within hours of Yasser Arafat’s death, putting him on a track to become the next overall leader of the Palestinians.

Israel has ruled out releasing jailed Marwan Barghouti, a leading Palestinian figure who is widely seen as the strongest candidate to succeed Yasser Arafat.

Top candidates to succeed Yasser Arafat as Palestinian leader:

MORE THAN a thousand Palestinian prisoners have started a hunger strike, in their strongest challenge against Israel.

Israeli troops and tanks began pulling out of the Rafah refugee camp early today, residents said, after a three-day sweep that left 39 Palestinians dead.

MARWAN BARGHOUTI, the Palestinian uprising leader seen as a successor to Yasser Arafat, faces life in an Israeli prison after being convicted yesterday of ordering shootings that killed four Israelis and a Greek monk.

Marwan Barghouti, the Palestinian uprising leader seen as a successor to Yasser Arafat, faces life in an Israeli prison after being was convicted today of ordering shootings that killed four Israelis and a Greek monk.

REBUFFING the incoming Palestinian Prime Minister, the leader of Hamas said yesterday the militant group will not disarm, agree to a truce or join the new Palestinian government.

A large-scale swap of prisoners with Lebanese guerrillas is closer than ever, Israeli premier Ariel Sharon said today.

Israel has agreed in principle to release about 400 Arab prisoners, including at least 200 Palestinians, in a swap with the Lebanese guerrilla group Hezbollah, a Palestinian source said today.

THE mainstream Palestinian Fatah movement, headed by Yasser Arafat, last night announced it was suspending attacks against Israel following the declaration of a truce by the militant Hamas and Islamic

Israeli soldiers killed three Hamas activists and destroyed a house in a village south of Gaza City early today as Palestinian factions worked to wrap up details of a three-month halt to attacks against Israelis.