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.

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.

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

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.

The Palestinian cabinet submitted their resignations today following the apparent Hamas victory in legislative elections, Prime Minister Ahmed Qureia’s office said, setting the stage for the Islamic group to lead a new Palestinian government.

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.

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.

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.

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.

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.

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.

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.

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.

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

The Palestinian prime minister promised today to make public the cause of Yasser Arafat’s death as an emissary was sent to Paris to pick up his medical records.

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.

Top candidates to succeed Yasser Arafat as Palestinian leader:

Comatose Yasser Arafat’s condition worsened today as Palestinian officials visited their critically ill leader, ignoring his wife’s angry objections.

YASSER ARAFAT’S wife yesterday accused his top lieutenants of seeking to grab control from her ailing husband, nearly torpedoing a visit by top Palestinian officials in the first sign of an open power struggle.

Senior Palestinian leaders including Ahmed Qureia and Mahmoud Abbas arrived in France tonight in a bid to check on the medical status of Yasser Arafat.

Palestinian leaders flew to France tonight to confront Yasser Arafat’s wife who accused his top lieutenants of seeking to grab control from her ailing husband.

The caretaker Palestinian leadership decided today to travel to Yasser Arafat’s bedside, reversing a decision to call off the trip after being lambasted by the ailing 75-year-old leader’s wife.

Palestinian leaders abruptly called off a visit to Yasser Arafat's bedside today, after the ailing leader's wife accused them of trying to depose her husband.

Palestinian leaders are to fly to Paris to consult with doctors about Yasser Arafat’s condition, a senior official said tonight.

Israel has completed preparations for the ailing Yasser Arafat to be buried in the Gaza Strip, outlining plans to allow West Bank Palestinians to cross through Israel for the funeral and permitting enemy Arab leaders to attend, security officials said today.

Clinging on to life in a French hospital, Yasser Arafat was unaware tonight of the growing row over where he will be buried.

THE ailing Yasser Arafat will be flown to Paris for treatment, one of his doctors said yesterday after the Palestinian leader spent most of the day sleeping, was confused at times and unable to hold down food.

Ailing Yasser Arafat performed Muslim prayers before dawn today, but his condition remains serious and a team of doctors flying in from Arab countries will decide whether he needs to be transferred from his compound to a hospital.

Yasser Arafat was in a serious condition today after collapsing and briefly losing consciousness, as his persistent two-week illness took a sudden turn for the worse.

PALESTINIAN president Yasser Arafat's health took a dramatic turn for the worse yesterday, as an ambulance rushed to his West Bank headquarters amid unconfirmed reports he had collapsed.