Israel is set to begin the complete withdrawal of its troops from southern Lebanon once the 5,000 UN peacekeepers arrive in the area, according to the Italian Prime Minister Romano Prodi.
Mr Prodi made his comments after meeting Israeli Deputy Prime Minister, Shimon Peres, in Rome.
UN Secretary General Kofi Annan said he was trying to speed up the arrival of extra UN peacekeepers in southern Lebanon, where the first contingent of 800 Italian troops is due to arrive tomorrow.
Mr Annan said the 5,000 UN troops and 16,000 Lebanese soldiers to be deployed in southern Lebanon would represent a 'credible force' to allow the Israelis to pull out entirely.
The Israeli army has confirmed that it had withdrawn from eastern parts of southern Lebanon, transferring control to UN forces for the first time since the end of the 34-day war with Hezbollah.
A spokesperson said the army had withdrawn from more than two thirds of the area it had occupied during the conflict, which ended with a UN-brokered ceasefire that halted the fighting on 14 August.
Meanwhile, aid agencies in Lebanon say the country will require millions of dollars in order to get back on its feet after the conflict.
Governments and international organisations are gathering in Stockholm in Sweden today to pledge money towards rebuilding work and have a target of $500 million.
According to Oxfam, Lebanon's agriculture industry was devastated during the Israeli bombing offensive.
Egeland highlights cluster bomb use
In another development, the UN Emergency Relief Co-ordinator, Jan Egeland, has described as shocking and immoral the use by Israel of cluster bombs in its offensive against Hezbollah in southern Lebanon.
According to UN mine clearing experts, cluster bombs have been found at over 400 locations in the region.
Israel has claimed its use of such weapons is covered under international law.
Speaking on RTÉ Radio's Morning Ireland, Israeli government spokesman Daniel Seaman said Israel had a right to defend itself as it saw fit.
Chris Clarke, who is an operative with the UN's Mine Action Service, which is responsible for mining Lebanon, said it was the worst cluster bomb problem he had ever seen.
Lebanon's reconstruction
A donors' conference in Stockholm has pledged more than $940 million dollars for immediate relief efforts for Lebanon, nearly double the target.
Ireland pledged €2 million bringing to €4 million its total allocation towards reconstruction in the Middle East.
In his appeal to the conference the Lebanese Prime Minister Fouad Siniora said his country's recovery from its civil war had been wiped out in days.
Mr Siniora said the Israeli military action had caused billions of dollars worth of damage to property and the Lebanese economy.
