The Israeli cabinet has approved plans to release 250 Palestinian prisoners in a show of support for the President of the Palestinian Authority, Mahmoud Abbas.
Israel's Prime Minister Ehud Olmert is expected approve a formal list of prisoners to be freed, all linked to Mr Abbas' Fatah movement.
Mr Olmert said the releases are part of a strategy to create conditions for the start of "meaningful discussions" with Mr Abbas.
Mr Abbas formed an emergency government after Hamas fighters seized control of the Gaza Strip, prompting Israel and Western nations to resume formal ties.
About 10,000 Palestinian prisoners are being held in Israeli jails, some without charge.