Israeli Prime Minister Mr Ariel Sharon has said he hoped to see a new Palestinian leadership thatcould "act with us to honestly implement the road map".
Despite tensions, Israeli and Palestinian officials havequietly resumed behind-the-scenes talks in recent weeks.
The Haaretznewspaper reported today there had also been growing cooperation between the Shin Bet security agency and Palestinian security services to prevent attacks in Israel.
Mr Sharon said at the weekend that he was ready to negotiate with Palestinian Prime MinisterAhmed Qurie once he consolidates his position. In response, Mr Qurie indicated he was also open to holding such a meeting.
Israeli Defence Minister Shaul Mofaz said he hoped to "start a dialogue" with Mr Qurie as soon as he set up a permanent cabinet, and that he had already laid the groundwork by holding a series of contacts with Palestinian officials in recent days.
Israeli media said Mr Mofaz had had talks with Palestinian Finance Minister Salam Fayyad.