A high-level, US-mediated joint security meeting aimed at hammering out a ceasefire plan between Israel and the Palestinians started late today, a senior Palestinian official said.
The meeting, which was due to be chaired by US special envoy Mr Anthony Zinni, began at about 7 p.m. (GMT) at an unspecified location, said the official, who asked not be named.
Ceasefire efforts were put under pressure earlier today when a Palestinian suicide bomber killed seven people on a bus in northern Israel.
The attack, claimed by the militant group Islamic Jihad and condemned by the Palestinian Authority, was the most lethal single incident since US Mr Zinni arrived in the region last Thursday.
Responding to the bombing Israeli Prime Minister, Mr Ariel Sharon said: "Mr Arafat has not abandoned his policy of terrorism. He has taken no steps (to end the violence) until now. He has given no orders. We will therefore take all the measures necessary."
But security sources said they did not expect Israel to retaliate, to avoid charges of undermining Mr Zinni's efforts.
Also commenting earlier Palestinian Information Minister, Mr Yasser Abed Rabbo, said he was confident a ceasefire would be reached by the weekend.
Looking forward to this evening's meeting, Mr Abed Rabbo said Mr Zinni had proposed not to end the session until a deal was sealed on implementing a ceasefire plan charted by US CIA Director Mr George Tenet.
This morning Mr Zinni met Mr Arafat at his West Bank headquarters in Ramallah before the planned security meeting on the nuts and bolts of the Tenet plan.
Islamic Jihad said today's bombing was revenge for the killing by Israeli forces of its leaders and civilians in military attacks in the West Bank and Gaza Strip.
Seven passengers, including four soldiers, and the bomber were killed and 27 people wounded when the blast tore through the vehicle, spraying body parts and debris across the highway.
AFP and