Israel offers to discuss ceasefire

Israeli Prime Minister Ariel Sharon says he is prepared to negotiate with Palestinians on a truce.

But the Israeli leader refused to call off the current army offensive against militants.

Sharon spoke hours after Israeli helicopters pounded Yasser Arafat's office to rubble, retaliation for a Palestinian suicide attack that killed 11 near Sharon's Jerusalem residence.

"We are in a war," Sharon told his Cabinet ministers, some of whom are demanding even tougher action. "All of us must stay united and make every effort to stand up to this wave of terror."

In renewed violence, three Palestinians and one Israeli were killed in scattered clashes in the West Bank and the Gaza Strip.

The United States is pressing for a ceasefire and US Mideast envoy Anthony Zinni is to visit the region this week for his third attempt in recent months to work out a truce.

Sharon has dropped his demand for a week of complete calm before moving forward with a US ceasefire plan, but made clear the current Israeli military offensive will press ahead.

"We want to make every effort to achieve a ceasefire," Sharon said.

"At the same time, we are continuing with our operations and if the terror continues our operations will continue."