Palestinian radio said 38 people were injured during the violence which erupted in East Jerusalem and in various West Bank towns.

Eyewitnesses and police in Jerusalem said demonstrators blocked streets with burning tyres and threw stones and bottles at the police.

But Israeli Prime Minister Binyamin Netanyahu rejected any compromise on the release of prisoners.

"No pressure can change the prime minister's position on the matter," his spokesman Aviv Bushinsky said.

"Israel never pledged to free Palestinians with blood on their hands or who belong to (the Islamic Resistance Movement) HAMAS.

"The Palestinians are trying to create an artificial crisis around this issue by organising protests or calling for hunger strikes among the prisoners," he added.

Police use rubber bullets

Witnesses said several Palestinians and journalists were injured by police batons during the clashes.

A police spokesman acknowledged the police had used rubber bullets and batons against the demonstrators, but said he was not aware of any injuries.

The spokesman said the demonstrators had not received permission for the march. Israeli radio reported that one demonstrator was held for questioning.

Prisoners' families were among the demonstrators

There were also demonstrations in the West Bank towns of Hebron, Bethlehem, Nablus and Tubas.

In Bethlehem, demonstrators burnt an Israeli flag and marched towards an Israeli army post, throwing stones. Israeli troops fired teargas and rubber bullets, before Palestinian police dispersed the crowd. No injuries were reported.

The demonstrations follow similar protests in Gaza on Monday, and stem from Palestinian anger over Israel's perceived failure to adhere to an agreement on prisoner releases which was said to be part of the Israeli-Palestinian interim peace deal signed in Washington last month.

Prisoner releases were not mentioned in the text of the agreement but there was reportedly a verbal understanding to free 750 of some 3,000 prisoners over a period of 12 weeks.

Israel freed 250 prisoners last week, but the Palestinians have complained that 150 of them were common criminals, not political detainees jailed for anti-Israeli activities.

Hunger strike spreads

Palestinian officials were quoted as saying that the hunger strike begun by Palestinian prisoners at Israel's Meggido jail on Sunday has now spread to Shatta prison in northern Israel.

The hunger strike, begun by members of Fatah, Mr Arafat's own faction in the Palestine Liberation Organisation, is intended to draw attention to the prisoners' situation.

The hunger strikers are accusing the Palestinian Authority of neglecting their cause.