Israeli Prime Minister Mr Ariel Sharon said today he hoped truce talks would take place next week between Foreign Minister Mr Shimon Peres and Palestinian President Mr Yasser Arafat.
"I believe that next week, I hope it will happen - that it will be quiet and calm and there will be the meeting", Mr Sharon told CNNtelevision in an interview. He did not set a date.
Mr Arafat and Mr Sharon ordered their forces to observe a ceasefire on Tuesday after almost a year of violence. The ceasefire has broadly held - despite sporadic shooting.
Mr Sharon had earlier said he would allow Mr Peres to meet Mr Arafat for talks only after there was 48 hours of total calm.
Several attempts to arrange the talks have failed, and Mr Sharon blocked a meeting that had been planned for last Sunday.
The talks are intended to arrange a lasting truce to pave the way for confidence-building measures and then a resumption of peace talks.