The Israeli government set criteria yesterday for the release of Palestinian prisoners from its prisons, but the stringent terms are likely to limit the number who are freed and possibly generate the first crisis between the two sides since the "road map" peace plan was launched last month.
The Israeli Prime Minister, Mr Ariel Sharon, told his cabinet that there "is no way prisoners with blood on their hands will be released", a reference to those Palestinians incarcerated for involvement in attacks in which Israelis have been killed.
It was also decided that members of the radical Hamas and Islamic Jihad would remain behind bars, as would prisoners the Israeli security services deem a potential threat.
In a dramatic vote, Mr Sharon's right-wing cabinet initially deadlocked at 10-10. He was saved from an embarrassing defeat when the measure passed 13-9 in a revote, but only after it was agreed all prisoner releases would be conditional on the Palestinians fulfilling their obligations under the road map.
Under the criteria, some 350 Palestinians are likely to be freed, most of them administrative detainees who have not been charged. The Israeli leader is expected to announce this at a meeting with his Palestinian counterpart, Mr Mahmoud Abbas, scheduled for Wednesday.
Palestinian officials, who insist all the 6,500 Palestinians behind bars must go free if a comprehensive peace deal is to be reached, rejected the Israeli criteria.
Mr Abbas has placed the prisoner issue at the top of his agenda, aware that a significant prisoner release will win him much-needed legitimacy among Palestinians.
He has warned that if Israel does not release large numbers then the ceasefire declared last week by the main Palestinian factions will be in jeopardy.