Israeli security chiefs have rejected a Palestinian request that they ease up on their ongoing strikes in the West Bank and Gaza Strip.
Israel insisted during US-brokered security talks in Tel Aviv that Palestinian President Mr Yasser Arafat must act further against Islamic militants.
"It was a difficult meeting," an Israeli official said. "We were firm in raising our contention that the Palestinians are arresting only second- and third-rate terrorists, rather than going for the main culprits."
Palestinian security chiefs briefed Mr Arafat on the outcome of the meeting but made no immediate comment.
Mr Sharon has accused Mr Arafat of just making token arrests in response to Israeli and US demands for a militant crackdown.
However, Mr Arafat said today his forces arrested 17 of 33 militants wanted by Israel. He said they pursuing efforts to arrest more.
Earlier today Israeli warplanes bombed the Palestinian Authority's main police headquarters , reducing two buildings to rubble and wounding at least 18 people.
The Israeli army said the Gaza raids were aimed at Palestinian Authority bodies that "support and aid terrorist activity". It said the buildings housed a factory for mortar bombs, a claim denied by a Palestinian police spokesman.
Earlier, Turkish Prime Minister Bulent Ecevit said Israeli Prime Minister Sharon had told him Israel wanted to be rid of Palestinian President Yasser Arafat.
"During my telephone conversation the other day with Prime Minister Sharon, it became very clear that Israel was inclined towards war," said Mr Ecevit. Mr Sharon openly expressed their desire to be rid of Mr Arafat, he claimed.
At least 748 Palestinians and 222 Israelis have died since a Palestinian uprising against Israeli occupation erupted in September 2000.