Breakthrough in the Middle East

The Egyptian President said a ceasefire has been agreed for the next four weeks between Israel and the Palestinians.

Hosni Mubarak made the announcement after a meeting with Israeli Foreign Minister Shimon Peres.

Mr Mubarak said Israeli Prime Minister Ariel Sharon stated in a letter to him that the Israelis would move to a ceasefire.

Mr Sharon stated in the letter: "Four weeks after the ceasefire, negotiations will start to find a solution to the situation and this will give hope that there will be stability."

400 people have died in the last seven months of violence.

According to the Egyptian-Jordanian plan, a cease-fire would follow an Israeli freeze to settlement construction and peace talks for a final peace deal would begin where they left off under the previous Israeli government.

Mr Sharon, however, has maintained that settlements should be expanded according to population needs.

He has also made clear that he wants an interim peace agreement to be implemented over an extended period of time and not a sweeping final status deal.

Mr Peres is scheduled to depart for Washington where he is to meet with US Secretary of State Colin Powell.