Israeli forces withdrew from Bethlehem and neighbouring Beit Jala early this morning, but remained in and around five other West Bank cities.
Meanwhile Israeli Prime Minister Mr Ariel Sharon informed US officials today he may postpone a visit to Washington next month due to the security situation in Israel, senior sources in Mr Sharon's office said.
Mr Sharon was tentatively scheduled to meet US President George W. Bush at the White House on November 11th and stop in London for talks with British Prime Minister Mr Tony Blair on the way to Washington.
Israeli political commentators had said that before meeting Mr Bush, Mr Sharon would be under pressure to meet the US president's calls for a full withdrawal from Palestinian-ruled areas it had reoccupied in the past 10 days.
Palestinians in Bethlehem returned to work and school today after Israeli forces pulled out under heavy US pressure to end a 10-day reoccupation of the traditional birthplace of Jesus.
Israeli Prime Minister Mr Ariel Sharon ordered the army to leave the West Bank city yesterday despite two Palestinian shooting attacks in which five people died in Israel.
The army began its pullout from Bethlehem and the neighbouring town of Beit Jala under cover of darkness and said it had completed the withdrawal by early this morning.
The United States, which is seeking to calm a year of Israeli-Palestinian violence as it tries to bolster Arab support for its anti-terror coalition, mediated a withdrawal on Friday, but Israel suspended the move on Saturday citing violence.
But Israeli forces remain in and around five other Palestinian-ruled cities, seized after Palestinian radicals assassinated far-right Tourism Minister Mr Rehavam Zeevi on October 17th to avenge Israel's killing of their leader in August.
Foreign Minister Mr Shimon Peres said Israel does not intend to stay in any Palestinianruled area.
"Every place where it is possible to reach a ceasefire agreement and the Palestinians are willing to take responsibility for quiet and security in the area, we pull out our forces", Mr Peres told Israel Channel Two television.
"We tell the Palestinians that if the quiet is retained, we will be outside and life will return to normal."