Israeli Prime Minister Ehud Olmert and Palestinian President Mahmoud Abbas are meeting in Jerusalem today, a week after Mr Olmert threw US-sponsored peace talks into limbo by announcing that he would step down. Aides said Mr Olmert favoured freeing some Palestinian prisoners held in Israeli jails as a goodwill gesture to Mr Abbas, but they gave no timeline.

Palestinian negotiator Saeb Erekat said Mr Abbas would "raise a number of issues, such as the permanent-status issues, checkpoints and prisoners." Israel's Cabinet on Sunday approved the release of five Palestinian prisoners as part of a swap deal with the Lebanese Hizbollah guerilla group that brought the bodies of two Israeli soldiers home.

Israel released 429 Palestinian prisoners last December to bolster Mr Abbas. A smaller group was released in October.

The issue of prisoners is highly emotive for Palestinians, who see their brethren held in Israeli jails as fighters against foreign occupation. Many Israelis fear that such amnesties encourage Palestinian militants to strike again.

Palestinian Prisoner Affairs Minister Ashraf al-Ajrami said Mr Abbas would insist that any deal include long-serving prisoners, women and children as well as political leaders, a reference to uprising leader Marwan Barghouthi, seen as a possible successor to Mr Abbas.

Israeli-Palestinian peace talks, aimed at reaching a statehood deal in 2008, have been marred by disputes over Jewish settlement building and violence.

Faced with a widening corruption probe, Mr Olmert announced last Wednesday that he would stand down as premier after a September 17 leadership contest within his centrist Kadima party.

But he has vowed to press ahead with the negotiations with the Palestinians and indirect talks with Syria until his last day in office.

Mr Erekat said Mr Olmert and Mr Abbas would be joined today by their chief negotiators, including former Palestinian Prime Minister Ahmed Qurie and Israeli Foreign Minister Tzipi Livni, a top contender to become Kadima's new chief.

Israeli officials say the US has been pushing the two sides to agree a written document as early as September.

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