Ms Rice's talks with Abu Mazen were described as "very positive"
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US National Security Advisor Condoleezza Rice will shortly meet Israeli Prime Minister Ariel Sharon amid signs of progress on the US-backed peace plan known as the roadmap.
Ms Rice held "very positive" talks with Palestinian Prime Minister Mahmoud Abbas - also known as Abu Mazen - in the West Bank on Saturday, Palestinian officials said.
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HAVE YOUR SAY
I feel hopeful about peace for the first time in ages
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Palestinian militant groups said they were close to announcing a three-month halt to attacks against Israel, while Israel agreed in principle to withdraw its troops from the northern Gaza Strip and the West Bank town of Bethlehem.
However, at least three radical groups have said they will not support a ceasefire, while Israel is insisting such groups be completely dismantled.
Truce 'imminent'
Ms Rice held about four hours of talks with Abu Mazen in the West Bank city of Jericho.
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ROADMAP MAIN POINTS
Phase 1 (to May 2003): End to violence against Israelis and Palestinians; Palestinian political reform; Israeli withdrawal and freeze on settlement expansion; Palestinian elections
Phase 2: (June-Dec 2003) Creation of an independent Palestinian state; international conference and international monitoring of compliance with roadmap
Phase 3 (2004-2005): Second international conference; permanent status agreement and end of conflict; agreement on final borders, Jerusalem, refugees and settlements; Arab states to agree to peace deals with Israel
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Palestinian officials said Ms Rice had responded positively to their concerns, agreeing on the importance of Israeli withdrawals from all Palestinian areas as soon as possible.
Palestinian cabinet minister Yasser Abed Rabbo said Abu Mazen also urged Ms Rice to press the Israelis to release Palestinian prisoners.
Earlier, the prime minister told a crowd in Ramallah: "There will be no peace or security if even one Palestinian prisoner remains behind bars."
Ms Rice's mission, which follows a visit to the region last week by US Secretary of State Colin Powell, has been buoyed by the Palestinian militants' decision to declare a truce.
The BBC's Barbara Plett in Jerusalem says that, like Israel, Washington wants the Palestinian Authority to dismantle the militant groups, not sign agreements with them.
But, she says, in forthcoming meetings, Ms Rice may press the Israelis to give the new arrangement a chance.
The leaders of Hamas and Islamic Jihad have said they are ready to stop attacks, but at least three other groups - Fatah, the al-Aqsa Martyrs Brigades and the Popular Front for the Liberation of Palestine - have not agreed to comply.
Withdrawal plans
As Ms Rice prepared to meet Mr Sharon and leading ministers, the Israeli army was finalising plans to pull out of some Palestinian areas.
Israel has agreed to hand over security responsibility to the Palestinians on the understanding they will prevent militants from launching attacks on Israel from those areas.
Israeli Foreign Ministry spokesman Jonathan Peled said Israel was "cautiously optimistic" about the deal, and expected the Palestinian Authority to "keep a lid on terrorist activity emanating from the Gaza Strip".
Israeli troops took control of northern Gaza in May after militants fired rockets across the border into Israel.