The statement said the cabinet had had the "positive intention" to approve the Wye accords, until the bomb blast.

He said the suicide bombing reinforced the view that attacks on Israeli civilians and perceived Palestinian attempts to evade implementing the accord indicated that the Palestinian Authority was not taking its responsibilities seriously.

The text of statement follows was:

The Government of Israel convened for the second day running with the positive intention of approving the agreement with the Palestinians, and put on the table a draft resolution for that purpose.

To our regret, since the Wye summit meeting, we have been witnessing two grave phenomena which sabotage that Israeli intention.

First, ceaseless terrorist actions against Israeli civilians, in which Israelis were murdered and wounded, and only miraculously was a massacre, including that of dozens of children, prevented.

Second, we are witnessing repeated attempts by Palestinian Authority leaders to get out of implementing their undertakings in the Wye agreement.

The Israeli Government will reconvene to discuss approval of the agreement when it is proven that the PA is taking resolute steps in a war to the bitter end against the terrorist organisations and their infrastructure, and after it is proven that the PA intends to implement fully all its undertakings in the agreement, including the undertaking to vote in the Palestine National Council on the annulment of the Palestinian Charter, and the imprisonment of the murderers.

The Government of Israel will take action to strengthen Jerusalem, the capital of Israel, and the security of its residents.

To conclude, the prime minister reiterated his commitments to make progress with the Palestinians on the basis of the fulfilment and strict implementation of the principle of reciprocity.