The Israeli military is delivering the bodies of 15 militants to the Palestinians for burial today.
The move comes a day after the Israeli cabinet approved the names of 500 prisoners to be released and security commanders prepared for the handover of a West Bank town to Palestinian control.
The bodies of the 15 Palestinian militants were to be driven from Israel's forensics institute to the Erez crossing into Gaza today. The militants had been killed in attacks against Israel in the past two years, including bombing-and-shooting attacks on Israeli army outposts in Gaza.
It was not clear why Israel had kept the bodies of these particular attackers. In some cases, the military returns bodies of militants immediately.
Islam, like Judaism, requires speedy burial. Late yesterday, senior Israeli and Palestinian commanders met to co-ordinate the handover of Jericho, the first of five West Bank towns to be turned over to Palestinian control in coming weeks.
The latest goodwill gesture, part of a package agreed at last week's Middle East summit, came as Palestinian leader Mr Mahmoud Abbas told the New York Timesthe war with Israel is effectively over and that Israeli Prime Minister Ariel Sharon is speaking "a different language" to the Palestinians.
In Israel, the political climate was growing increasingly divisive, however, over Mr Sharon's plan to pull out of Gaza and four West Bank settlements this summer.
Israeli President Moshe Katsav said today he favours detaining some Jewish extremists without trial or charges, in so-called administrative detention.
Mr Katsav spoke in response to a wave of threats against government ministers who support the Gaza withdrawal.