The Israeli cabinet approved in principle today the release of Palestinian prisoners in a bid to bolster a US-backed peace plan and a truce declared by militants, senior government officials said.
There was no immediate word on how many prisoners would go free or the terms for their release.
Israeli officials have insisted that Palestinians involved in lethal attacks stay locked up. Palestinians demand the release of all prisoners, estimated at between 5,900 and 8,000.
The government officials said the cabinet voted 13-8 in favour of a prisoner release and the establishment of a ministerial committee to decide who would go free and when.
A major prisoner release would boost the popularity of reformist Palestinian Prime Minister Mr Mahmoud Abbas, who has been accused by militants of trying to snuff out their uprising without guarantees Israeli occupation will end.
The cabinet session was to be followed by talks on the prisoner issue between Israeli Defence Minister Mr Shaul Mofaz and Palestinian Security Affairs Minister Mr Mohammed Dahlan.