Clashes overshadow Bethlehem talks

Israeli troops patrol Bethlehem as negotiations continue

Israeli troops have killed four Palestinian gunmen who they say were attempting to infiltrate Israel from the Gaza Strip.

The army also arrested at least 12 Palestinians in a fresh wave of security sweeps across the West Bank.

Sharon: Visiting the US

And Israeli tanks have reportedly staged a new incursion into the northern West Bank town of Tulkarm, occupying its northern and eastern sectors and a nearby refugee camp.

The incidents came as details were being finalised of a deal to end the five-week stand-off at Bethlehem's Church of the Nativity, where more than 100 Palestinians are surrounded by Israeli soldiers.

The Israeli Prime Minister, Ariel Sharon, has begun a series of talks with officials in Washington including the American Secretary of State, Colin Powell, and the US Defence Secretary, Donald Rumsfeld, ahead of a meeting with President George W Bush on Tuesday.

Fresh violence

Speaking earlier, Mr Powell told reporters that an agreement on the siege was near, but added: "We need one or two little problems solved".

In two separate incidents on Monday, the Israeli army said it had shot dead militants trying to break through Israel's cordon around Gaza.

In one incident, two gunmen were killed after they slipped into southern Israel near the Kissufim crossing point.

The army said two soldiers were wounded during a four-hour gun battle.

Palestinian sources identified the dead men as members of the armed wing of the radical Islamic Jihad movement.

Israeli troops also shot dead two Palestinians who broke through an Israeli military checkpoint at the northern crossing of Karni.

One of the gunmen was reportedly wearing an explosives belt. Palestinian officials identified the two men as members of Hamas.

Exile or custody

Few details of the proposed deal to end the siege of the Church of the Nativity in Bethlehem have emerged, but it appears that about 40 Palestinians who are wanted by Israel will be sent either into exile in Italy or into custody in the Gaza Strip.

 Click here for Bethlehem siege timeline

An end to the siege would pave the way for Israeli troops to pull out of Bethlehem - Mr Bush has demanded a full Israeli withdrawal from Palestinian-ruled areas.

Residents near the church have been put under curfew

The BBC's Peter Biles in Bethlehem says the sticking point at the moment appears to be the number of Palestinians who will go to Italy.

The others in the church - who include clerics and civilians - are expected to be allowed to go free.

Israel says three Palestinian leaders have been assigned to help the army with weapons confiscation and to organise the evacuation of the church.

Foreign mediators

Under the deal, most of the wanted men would be sent to Gaza for trial in Palestinian courts, one report said.

Another report said that, according to the deal outlined by the Palestinians, the men would be imprisoned in Gaza and guarded by US and British jailers - similar to the agreement brokered to end Palestinian leader Yasser Arafat's confinement in Ramallah last week.

The Pope's special envoy was sent to assist moves towards a settlement

The outline accord, negotiated with the help of foreign mediators would, if implemented, resolve the last major confrontation in the Israeli military offensive against Palestinian militants.

Among those involved in efforts to end the stand-off is the Pope's special envoy Cardinal Roger Etchegaray, who arrived in the Middle East last week.

Mr Sharon, who has begun talks with senior US officials, has taken with him details of what he calls "a serious plan, maybe the most serious" to end the conflict with the Palestinians.

Aides said Mr Sharon would argue that a long-term interim deal with the Palestinians should be worked out at the regional peace conference already proposed by Mr Powell.

US and EU 'funded terrorism'

The Israeli leader is seeking the president's support to sideline Mr Arafat - a move that the Bush administration has so far resisted.

He is expected to hand over to Mr Bush a collection of documents which officials say proves links between Mr Arafat and terrorist organisations.

The documents, which allege that US and European Union funding for the Palestinian Authority was used to finance terrorist attacks on Israel, have been dismissed as "lies and fabrications" by leading Palestinians.

It will be Mr Sharon's fifth visit to the White House since he was elected last February. Mr Arafat has yet to receive an invitation.