Israel is ready to transfer control of several West Bank towns to Palestinian forces in the coming days.
Israeli Defence Minister Shaul Mofaz and Palestinian Security Chief Mohammed Dahlan worked out details of the handover in weekend talks which have been described as 'constructive'.
An informal ceasefire was agreed last week with militants after which Palestinian forces began taking control in Gaza.
Ramallah, Bethlehem, Tulkarm and Jericho are among those expected to be the first areas returned to Palestinian control.
Meanwhile, Israeli and Palestinian representatives have met in Tel Aviv to pave the way for a summit next month between Israeli Prime Minister Ariel Sharon and Palestinian leader Mahmoud Abbas.
The summit will mark the first direct talks between the two leaders since Mr Abbas was elected President.
