Israel planned to release several hundred Palestinian prisoners today, but Palestinians – complaining that the list is not long enough – cancelled a summit and called for US intervention to prevent a crisis in peace efforts.

ISRAEL is proposing a troop pullout from two more Palestinian towns in the wake of meetings between the two sides' leaders and US President George W Bush, officials said yesterday.

The split between Palestinian Prime Minister Mahmoud Abbas and Yasser Arafat, which threatens to wreck Mideast peace hopes, widened tonight.

ISRAEL’S cabinet yesterday voted to release several hundred Palestinian prisoners, a move that could help push forward a US-backed peace plan.

Israel’s Cabinet voted today to release groups of Palestinian prisoners – but Prime Minister Ariel Sharon said the release would be conditional on a Palestinian crackdown against militant groups.

Thousands of mourners have attended the funerals today of six people killed in internal Palestinian fighting.