New Palestinian cabinet postponed

Mr Arafat is said to object to Mr Qurei's choice of interior minister

Palestinian Prime Minister Ahmed Qurei says he has postponed the formation of a new government for a week.

His mandate for a 30-day emergency cabinet was due to expire on Tuesday.

Palestinian sources say Mr Qurei and President Yasser Arafat are wrangling over who to appoint as interior minister - with power over security.

The issue of security - in particular, reining in the militants - is one of the key requirements set out in the American-backed 'roadmap' to peace.

Mr Qurei told reporters in Ramallah on Tuesday that he was confident he would be in a position to seek parliamentary approval for a new government by next week.

"A session for the Palestinian Legislative Council will convene next week for a confidence vote," he said.

Mr Arafat is reported to object to Mr Qurei's choice as interior minister - Nasser Youssef - because he fears Mr Youssef might be too independent-minded.

The Palestinian president is said to want to appoint one of his own loyalists.

The dispute over security was one of the factors that led to the resignation of the previous prime minister, Mahmoud Abbas, after less than five months in the job.

High-level talks

Both Israel and the US refuse to deal directly with Mr Arafat because they blame him for failing to end violence by the militants.

Mr Qurei recently confirmed there had been high level talks with Israel - reportedly between ex-Palestinian finance minister Salam Fayad and Israeli defence minister Shaul Mofaz - and such contact would continue.

Israel's Prime Minister Ariel Sharon has also showed signs of thawing - saying he is ready to meet Mr Qurei "whenever he is ready".

Little progress can be made towards peace until a new Palestinian government is formed, the BBC's David Chazan in Ramallah says.

He says some Palestinians in Ramallah are annoyed at the continued bickering between Mr Arafat and his prime minister - and many appear to have lost interest.