Washington's Middle East peace envoy Anthony Zinni has returned to the region in a renewed effort to establish a lasting ceasefire. His arrival followed the Israeli withdrawal from several West Bank cities.
It is reported that Mr Zinni has called a joint security meeting between Israel and the Palestinians to take place on Sunday.
Meanwhile, Israel has withdrawn its troops from the West Bank town of Jenin and part of Ramallah. The Israeli army said that it would also continue to ease restrictions on Palestinian areas.
Yasser Arafat said that he doubted the authenticity of the withdrawal and suggested it was a ploy aimed at deceiving Mr Zinni. Palestinian officials have said that they want an immediate implementation of the peace process drawn up by the US.
Anthony Zinni's last visit to the region late last year coincided with some of the worst violence of the 15-month Palestinian uprising. Both sides acknowledge that this mission is a new opportunity to push for peace, but it remains to be seen how much can be achieved during his four-day visit.