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Occupied Jerusalem: Israeli Prime Minister Ehud Olmert and Palestinian President Mahmoud Abbas have agreed to authorise peace talks which could begin on Monday, officials said.
The announcement comes three days after George W. Bush's visit to Palestinian territories, when the US leader urged Israel to end "occupation" of territories.
Olmert and Abbas said they would tell negotiating teams to "conduct direct and ongoing negotiations on all final status" and core issues, the prime minister's office said.
The issues include Israeli settlements, the right of Palestinian refugees to return to Israel, borders and the future Palestinian state.
Olmert told his Cabinet on Sunday that it is a disgrace that they have not done anything to dismantle illegal Israeli outposts.
Meanwhile, Israeli Foreign Minister Tzipi Livni is due to meet former Palestinian prime minister Ahmed Qorei on Monday, said Aryeh Mekel, a spokesman for Livni.
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