Israel is preparing to hand over control of two West Bank towns to the Palestinians.
The agreement for an Israeli withdrawal from Jericho and Kalkeelya was reached at a meeting between the Israeli Minister of Defence and the Palestinian Security Minister.
Security sources say that if the situation remains calm, the hand-over could take place in the next few days.
Palestinian authorities say the two other towns of Ramallah and Tolkarim could also be returned to Palestinian control in the next few weeks.
Meanwhile, Israel is considering the possibility of allowing the Palestinian leader, Yasser Arafat, to travel to Gaza to visit the grave of his sister, who died earlier this week.
