Palestinians free Hamas leader

Yasser Arafat at prayer with Hamas founder Sheikh Ahmed Yassin

The Palestinian Authority has released from jail a top political leader of the militant Islamic Hamas movement.

According to family members and Hamas officials, Abdel Aziz al-Rantisi was set free on Tuesday.

Mr Rantisi was jailed in Gaza in July on charges of sedition and for criticising Palestinian Leader Yasser Arafat's negotiating position at last year's summit at Camp David, in the United States.

Hamas supporters hold the movement's flag aloft

The release came as it was announced that Israeli Prime Minister Ehud Barak would travel to Egypt for a summit with President Mubarak.

This has been interpreted by some analysts as a sign that a deal between Israeli and Palestinian negotiators is close.

The two sides have until Wednesday to tell President Bill Clinton whether or not they accept his proposals for a final peace deal.

'Responding to pressure'

Hamas officials, announcing the release of Mr Rantisi, said that Mr Arafat was responding to demands from a variety of Palestinian factions.

They called for the freeing of all other Hamas activists held by the Palestinian Authority.

Barak: Upbeat about peace proposal

Mr Rantisi's release is likely to be strongly criticised by Israel, which accuses the Palestinian Authority of responsibility for attacks against Israelis because it has freed many radical Islamists.

Hamas opposes the Israeli-Palestinian peace process and has claimed responsibility for attacks that have killed or wounded many Israelis in recent years.

Most recently, Hamas said it carried out a suicide bomb attack last week which wounded three Israeli soldiers.

Positive signs

Analysts are suggesting that despite the many obstacles, there are some signs that a deal is now looking closer than for some time.

Reported American proposals

Israel to concede sovereignty over much of East Jerusalem and the Al-Aqsa mosque

Palestinians give up the right of return for Palestinian refugees

Palestinian state on 95% of the West Bank and 100% of the Gaza Strip

The release of Mr Rantisi, one of Mr Arafat's most prominent political opponents, may be an attempt by the Palestinian leader to win over his critics in advance of trying to gain domestic support for a possible deal.

However, a BBC correspondent in Jerusalem, Richard Myron, says that even if both sides agree to compromise on the key issues, they will face considerable domestic opposition to a final peace deal.

Conditional acceptance

Israeli Prime Minister Ehud Barak said that he would accept a compromise peace deal proposed by US President Bill Clinton - provided the Palestinians do the same.

About 350 people have died in nearly three months of violence

His remarks followed Palestinian leader Yasser Arafat's comments that the deal did not remove the "obstacles to peace".

In an interview for Israeli TV, Mr Barak said that he owed it to Mr Clinton, who had invested seven and a half years in the peace process, to discuss the proposal.

But he added that it was far from clear that the Palestinians would accept the offer.

Mr Arafat stopped short of rejecting the US ideas, saying they needed to be examined in greater detail.