An Israeli government official today accused Egypt of trying to meddle in politics – bringing into the open a rift over Egyptian President Hosni Mubarak’s overtures to the Israeli left and his harsh criticism of Prime Minister Ariel Sharon.

The outlines of an agreement to resolve the 35-day standoff at the Church of the Nativity in Bethlehem were taking shape today, but the sides remained at odds on several issues including how many of the wanted Palestinians inside the Christian shrine would be deported.

Despite US pressure to enable Yasser Arafat to join this week’s crucial Arab summit, Israel will not lift the travel ban on the Palestinian leader unless he takes decisive steps against militants, an adviser to Israeli Prime Minister Ariel Sharon said today.

After a round of shuttle diplomacy by the new US Mideast envoy, Israel and the Palestinians agreed to resume talks on security cooperation today, but the scope of the negotiations wasn’t clear.