Israeli security officials said today the army would relax its West Bank travel restrictions.
The move is being taken to bolster Palestinian Prime Minister Ahmed Qurie in a power struggle with Mr Yasser Arafat delaying US-backed peace moves.
Security sources said Defence Minister Shaul Mofaz had also decided in principle to remove 10-20 Jewish settlement outposts on occupied West Bank land. He is to hold talks in Washington with US officials who want the outposts uprooted.
Israel's army chief jarred the government last week when he said the clampdown was driving Palestinians into the arms of militants, undermining leaders like Mr Qurie who want peace talks.
"The point of these steps is both to help Qurie consolidate his position vis-a-vis Arafat and the militants and satisfy the Americans who have been very critical of outposts," a senior Israeli security source said.
No timetable for the moves was given, and Palestinian residents reported no easing of restrictions that have largely trapped them in their towns and crippled their economy.
An army statement said armoured forces would reduce their presence in and around West Bank cities except for Nablus and Jenin. But there was no intention to remove a network of checkpoints and roadblocks.
It said troops would continue raiding Palestinian areas if needed. Israel says its measures are a must to stop suicide bombers. Palestinians say incursions obstruct ceasefire efforts.