Israeli and Palestinian negotiators are preparing for a new round of talks in Washington later today to try and revive the Middle East peace process. In a possible sign of compromise Israel is reportedly considering giving up sovereignty over the controversial Al-Aqsa Mosque in Jerusalem. Meanwhile, the right wing Likud politician Benjamin Netanyahu has decided to withdraw from the contest for prime minister after the Israeli parliament rejected a motion to hold a general election.
According to opinion polls Mr Netanyahu is the most popular choice for the position of Prime Minister. However, he has now ruled himself out of the race after the Knesset refused to sanction a general election. The Knesset is fragmented and Mr Netanyahu believes that if he was elected prime minister and the parliament remained the same he would be incapable of running the country. However, analysts believe that for tactical reasons he could change his mind. But for the moment that now leaves Ehud Barak pitted against the right wing Likud Party leader, Ariel Sharon. Mr Barak is desperate to secure a peace deal with the Palestinians before the Prime Ministerial contest in February.
Fighting continued overnight as Israeli and Palestinian negotiators prepared for today's talks in Washington. There are signs that the Israeli government may be preparing to make significant compromises to try and restore stability to the region. One government minister said that it was time for what he described as painful concessions, referring particularly to the sovereignty of the Al Aqsa Mosque in east Jerusalem. Disputes over the site led to the collapse of the Camp David talks in July, and it was the visit of Ariel Sharon to the site in September which sparked the latest cycle of violence.