Israel will hand the West Bank town of Jericho over to Palestinian security control tomorrow, boosting cooperation as moves were underway to get militants to agree a formal truce with Israel.

Israel will release 500 Palestinian prisoners next week, one of a series of goodwill gestures aimed at strengthening the new Palestinian leadership, a Palestinian negotiator said today.

The area around Saddam Hussein’s hometown of Tikrit, a hotbed of resistance since he was ousted by US-led coalition forces, was always an obvious retreat for the fallen dictator.