Israel agreed Sunday to free up to 200 Palestinian prisoners to show goodwill after Egypt freed a convicted Israeli spy ahead of elections for Yasser Arafat's successor, officials said. 

The promised release reinforced hopes for a new push to end decades of conflict in the Middle East.

In another sign for optimists, Israel's Labor Party began talks with Prime Minister Ariel Sharon's Likud on a coalition that could enact his plan to abandon the occupied Gaza Strip.

The prisoner release was agreed at Sharon's cabinet meeting. No release date has been set yet and a committee still has to decide which of some 7,000 Palestinian prisoners will be freed.

Sharon's spokesman Raanan Gissin said the release of 100 to 200 prisoners would be a gesture to Egyptian President Hosni Mubarak, who freed convicted Israeli spy Azzam Azzam last week and plays a growing role in trying to promote peace talks.

"Of course if we move towards a solution with the Palestinians there will be more releases," Gissin said. "That depends on the new Palestinian leadership."

Gissin said there would be no release of prisoners who planned or carried out attacks that killed Israelis. Israel last freed Palestinian prisoners in September, allowing 160 to go free to ease overcrowding.

Unlikely to be among those released was uprising leader Marwan Barghouthi, who is jailed for plotting to kill Israelis. Barghouthi is the main rival among 10 candidates in the upcoming Palestinian elections.

Palestinian minister for prisoners, Hisham Abdel-Razek, said that Israel should release those serving long sentences "otherwise the move would be more of a media stunt."

(China Daily December 13, 2004)