Israel's opposition Labour party is likely to join Prime Minister Ariel Sharon's coalition next week, a move that could promote a Gaza pullout plan and also avoid early elections, his spokesman said last night.
The entry into the government of the left-wing Labour Party, led by Mr Shimon Peres, a Nobel Peace Prize winner, could also help restart stalled talks with the Palestinians after they vote on January 9th for a successor to late President Yasser Arafat.
"They have reached an agreement. They will meet tomorrow (Saturday) to summarise it," said Mr Sharon's spokesman Mr Assaf Shariv, adding that the deal was likely to be signed tomorrow.
Mr Peres said last week that Labour should join the government "unconditionally" to speed up a plan to "disengage" from conflict with the Palestinians by evacuating all 21 Jewish settlements in Gaza and four of 120 in the West Bank in 2005.
"Let's close (the deal) and go to a unity government," Channel 2 television reported him as telling Mr Sharon yesterday. Labour officials were unavailable for comment, but party sources confirmed a deal had been reached.