Israel has annexed Arab areas of Jerusalem
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Israel is reconsidering its decision to prevent residents of East Jerusalem voting in Palestinian parliamentary elections next month, officials say.
Four days ago an Israeli spokesman said his country did not want to assist militant group Hamas to gain power.
Palestinians accused Israel of trying to sabotage the poll, and threatened to cancel it unless Jerusalem could vote.
It now appears Israel does not want to be blamed if the vote is called off, a BBC correspondent says.
"Israel has no intention of giving [Palestinian President] Mahmoud Abbas an excuse to cancel the election because he fears a victory for Hamas and allow him to accuse us before the international community of being responsible for his decision," a senior Israeli official told the AFP agency.
The source said Israeli Prime Minister Ariel Sharon would "contemplate" allowing polling in East Jerusalem, but the final decision would be taken when the Palestinian Authority confirmed that the election was going ahead on 25 January, as scheduled.
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PALESTINIAN ELECTIONS
Scheduled for 25 January; originally set for July 2005
132 members elected to Palestinian Legislative Council (PLC)
Fatah and Hamas are main contenders
First time Hamas participates in parliamentary poll
Israel says Hamas cannot take part under a 1995 agreement
Last parliamentary elections held in 1996
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Previously Palestinians have been allowed to vote in Israeli post offices in East Jerusalem, which Israel has annexed and sees as its exclusive domain - though international law decrees it to be occupied territory.
Mr Abbas' Fatah group is expected to face a strong challenge in the poll from Hamas, which is contesting parliamentary elections for the first time.
Both Israel and the Palestinian Authority have been concerned at the rise of Hamas, correspondents say.
Dilemma
Egypt is also reported to be trying to persuade Mr Abbas to delay the vote to give him more time to sort out disputes within his own party.
The latest comments from Israeli officials leave Mr Abbas in a difficult position, says the BBC's Arab regional editor, Bob Trevelyan.
Postponing elections is likely to prompt criticism about a lack of democracy and will anger Hamas, which has linked its ceasefire to the elections being held on time, he says.
But holding them on time could be disastrous for Mr Abbas' party, and leave Hamas - a group committed to the destruction of Israel - as the biggest party in the Palestinian parliament.