Palestinian militants have agreed to extend until the end of this year a halt to attacks on Israel.
The move has been welcomed by the Israeli Prime Minister, Ariel Sharon, however, the United States says it does not go far enough.
Palestinians linked what they called a period of calm to Israel freeing prisoners and withdrawing from West Bank towns. Mr Sharon reiterated his call for Palestinian militants to disarm.
The agreement was reached in Egypt after 48 hours of talks.
