Israel is today considering a formula to allow the CIA oversee a truce with the Palestinians after G8 leaders urged Israel to allow in monitors.
Foreign Minister Mr Shimon Peres suggested Israel might agree to CIA monitors to oversee a truce drawn up by CIA director Mr George Tenet last month - along with an internationally backed framework for renewing peace talks.
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The ceasefire has been broken by almost daily bloodshed between the sides since it was agreed on June 13th with the hope of ending 10 months of fighting in which over 600 people have been killed.
Political sources said Israel had agreed to the deployment of as many as 10 CIA officers to monitor the ceasefire but that it still opposed a Palestinian demand for the deployment of international observers or peacekeepers.
"We've never been against the CIA bringing a few more monitors for the purpose of its work. This started long before we talked about an international force or not," Mr Peres said last night.
Sources said it was not clear if the United States would agree to allow the CIA to raise its already prominent role in the conflict.
Israeli security forces remain on high alert today after a would-be Palestinian suicide bomber was arrested shortly before entering the northern city of Haifa with half a dozen pipe bombs.
Alerted to a possible bombing in Haifa, police set up roadblocks around the city and found the man before he could carry out the attack. After questioning, he led them to the bomb which was hidden in an apartment building.
The Israeli army also reported a Jewish settler’s car and a settlement in the West Bank came under Palestinian fire late last night and Palestinians fired at troops in the West Bank and in several parts of the Gaza Strip.
There were no reports of casualties.