The end of Israel's reoccupation of part of a Palestinian-ruled West Bank town appeared today to have set the stage for a possible new round of Israeli-Palestinian truce talks.
An Israeli political source said discussions were under way between officials from both sides to prepare the agenda for a possible meeting between Palestinian President Yasser Arafat and Israeli Foreign Minister Shimon Peres as early as next week.
Previous talks between the two leaders have failed to bring any lasting calm.
Israeli media said Mr Arafat and Mr Peres would try to build on diplomatic efforts that led to the withdrawal yesterday of Israeli tanks and troops from Beit Jala.
The pullout, brokered by the European Union, ended a two-day Israeli incursion into the Palestinian-controlled town near Jerusalem.
In Rome, a source close to Italy's Foreign Ministry said Mr Arafat could meet Mr Peres in Italy next week.
"From what we know, Arafat and Peres should have an informal meeting in Cernobbio (near Milan), which is expected to be followed by a formal meeting in Rome," the source told reporters.