Sharon set for talks on coalition

Sharon has lost his parliamentary majority

Israeli Prime Minister Ariel Sharon says that he has scheduled talks with the opposition leader to discuss the formation of a coalition government.

Mr Sharon told a conference the meeting with Shimon Peres was set for Sunday.

The prime minister's plan to withdraw from the Gaza Strip has cost him his parliamentary majority.

Mr Peres had vowed not to address the issue as long as Mr Sharon remained embroiled in a corruption scandal. Last month he was cleared of any wrongdoing.

"I set a meeting for Sunday with [Labour leader] Shimon Peres to discuss the possibility of broadening the coalition," Mr Sharon said.

'Widely expected'

The BBC's Simon Wilson in Jerusalem says the proposed talks stem from Mr Sharon's apparent determination to force through his controversial Gaza disengagement plan.

GAZA PULL-OUT PLAN Pull-out from all 21 settlements in Gaza and 4 in West Bank Preparation period due to end by March 2005 Four-stage evacuation to be completed by end of 2005 Each stage requires cabinet vote

The prime minister proposes to pull Israeli troops and settlers out of the Gaza Strip and parts of the West Bank.

The plans are backed by most Israelis, but are very unpopular among right-wingers, including large sections of Mr Sharon's Likud party.

The move had been widely expected after right-wingers in Mr Sharon's coalition were forced out for refusing to back his proposals.

But our correspondent notes that this will not be a simple decision for Mr Peres - whose centre-left party is also divided between advocates and sceptics of the Gaza plan.