Prime Minister Ariel Sharon signaled today he might uproot some isolated Jewish settlements on occupied land and then set Israeli-drawn borders for a Palestinian state if a US-backed peace plan failed.
Palestinians voiced deep suspicion of what Israeli media dubbed the "Sharon Plan" ahead of a meeting, possibly as early as this week, between the right-wing leader and Palestinian Prime Minister Ahmed Qurie on reviving the peace "road map."
Israeli media described the plan by Mr Sharon - a long-time champion of settlements- not so much a peace gesture but a possible bid to determine the borders of a Palestinian state delineated by an internationally condemned Israeli barrier.
"I have been thinking for some time about unilateral steps that would ease things for Israel and protect its interests, without addressing the question of whether they are also good for the Palestinians," Mr Sharon told the Yedioth Ahronothdaily.
Mr Sharon has faced mounting calls in Israel for bold action to break a peacemaking stalemate. Right-wing ministers were likely to oppose any settlement evacuation.
The peace process was jolted Friday when Israeli TV reported Mr Sharon planned to scrap some Jewish settlements by mid-2004 and move settlers to southern Israel to make way for a Palestinian state.
A source in Mr Sharon's office confirmed such talk, but said it only concerned settlements in the Gaza Strip and much could change by next summer.
Reporting details of what it dubbed the "Sharon Plan," the Maarivdaily said the proposal was a fallback in the event talks with Mr Qurie over the road map failed. The peace plan charts reciprocal steps toward a Palestinian state by 2005.
In the absence of a peace deal, Israel would speed up construction of the West Bank barrier - which would loop around settlement blocs inside Palestinian territory - and unilaterally establish a border, the paper reported.
Israel says the barrier is necessary to stop Palestinian suicide bombers from reaching its cities. Palestinians call it an attempt to create a political border.