UN draft resolution

End to all acts of violence Return to positions held pre-uprising Normal relations among all states in region Israeli withdrawal from West Bank and Gaza End to settlement building Creation of Palestinian state

At the United Nations, Arab diplomats redrafted a resolution seeking an end to the conflict, which would recognise Israel in return for an Israeli withdrawal from the West Bank and Gaza Strip.

Meanwhile, a Saudi Arabian peace initiative continued to gain momentum when Israeli President Moshe Katzav invited Saudi Crown Prince Abdullah to come to Israel discuss the plan.

No Saudi official has previously set foot in the Jewish state.

The Saudi plan, which is reflected in the Palestinian-proposed UN resolution to be debated later on Tuesday, calls on Arab states to recognise Israel in return for a full Israeli withdrawal from the West Bank and Gaza Strip.

The move has been welcomed by Palestinians and has brought cautious praise from Israel and the United States.

Renewed co-operation

Mr Arafat announced the resumption of security talks after a two-hour meeting with Mr Solana at the Palestinian leader's West Bank headquarters in Ramallah.

Palestinians called off earlier plans to resume security talks

"This is a request from our friend, Javier Solana, and I cannot say no to Solana's suggestions," Mr Arafat said.

Palestinian officials say they will meet Israeli secuity officials later on Tuesday.

Palestinians suspended security talks on Sunday after Israel refused to let Mr Arafat leave Ramallah, where he has been confined since December.

Mr Solana called on Israel to lift all limitations on Mr Arafat's movements "the sooner the better", in order for him to work to prevent further militant attacks on Israeli citizens.

The EU envoy is due to meet Israeli Prime Minister Ariel Sharon later on Tuesday.

The Palestinian leader said that he and Mr Solana had talked about the need for European as well as US observers to follow up the security meetings.

Threat of retaliation

Earlier, Israel said it was cancelling its offer last week not to initiate military action against Palestinian militants for a week after the attacks in Jerusalem and near the Israeli settlement of Nokdim in the West Bank.

Al-Aqsa Brigades claimed responsibility for the shootings

The radical Palestinian group, al-Aqsa Martyrs Brigades, which is linked to Mr Arafat's Fatah movement, said it was responsible for the attacks.

The Israeli prime minister's spokesman, Raanan Gissin, said Israel would retaliate in a "measured" way.

Violence also flared at Rafah on the border between the Gaza Strip and Egypt late on Monday when six Palestinians were wounded by Israeli tank fire, Palestinian medical and security sources said.