Israel 'to resume talks with Palestinians'

Israel has said it will resume peace talks with the Palestinians.

The move comes two days after it suspended the negotiations after the killing of two Israelis in the West Bank.

An unsourced report said the talks would resume on Thursday afternoon in the Egyptian resort of Taba.

Prime Minister Ehud Barak had recalled the leaders of his negotiating team for consultations on Tuesday after two owners of a restaurant in Tel Aviv were killed by masked gunmen in the West Bank.

The decision to resume the negotiations was made at a meeting between Mr Barak and senior ministers, the report said.

Mr Barak's office had no immediate comment on the report, which was also carried on Israel television. The talks were expected to resume after the funeral of the two Israelis in Haifa.

Before the decision, several members of Barak's Cabinet said the negotiations should continue despite the violence.

"Every time things are delayed the price is greater for both sides who want to reach peace," Justice Minister Yossi Beilin told army radio. "There have always been extremists who don't want peace and who will try to halt talks."

Before the sudden suspension of the talks, the sides had been poring over maps outlining their positions on border issues and control over parts of Jerusalem.

Last night, Israeli soldiers killed one Palestinian and wounded another when they were spotted entering Rafiah Yam, an Israeli settlement in Gaza.