Progress in Arafat dispute

Palestinian Prime Minister Ahmed Qureia and leader Yasser Arafat have agreed on the appointment of an interior minister, a Palestinian official has said.

The move raises the chance of a resolution in a long-running dispute over control of security forces.

An end to the stand-off between the prime minister and Arafat would clear the way for formation of a new Palestinian government and a renewal of high-level talks with Israel.

The two are to meet again on Saturday. Then, top Fatah members are to decide on the new proposals, the official close to Qureia said. Agreement would clear the way for a vote on the new government.

Palestinian Foreign Minister Nabil Shaath said a parliamentary vote on the new government would likely happen by Sunday.

The progress came after a late night meeting involving Mr Qureia, Mr Arafat and top officials in the Fatah movement.

Early on Saturday, a Fatah official said Mr Arafat and the prime minister agreed on the appointment of longtime Arafat confidant Hakam Bilawi as interior minister.

It was an apparent concession by Mr Qureia, who had insisted for weeks on the appointment of General Nasser Yousef.

An official close to Mr Qureia said the two men agreed that control of security forces would not be placed under the interior ministry, but under a 12-member national security council headed by Mr Arafat.

The United States has been pushing for consolidation of the security forces under control of the prime minister as a precursor for action against militants. However, Qureia has said he prefers a negotiated end to violence, not a crackdown.