Prime Minister Ehud Olmert said Saturday after meeting with British Prime Minister Tony Blair that he remains "dedicated to advancing the political process with the Palestinians" in accordance with road map, and said that he intends to meet with Palestinian Authority Chairman Mahmoud Abbas.

"I assured Prime Minister Blair that I am ready to work closely with the Chairman of the Palestinian Authority Abbas to implement the road map," Olmert told a joint news conference their talks in Jerusalem.

Olmert said that there could be "no short-cuts" in the implementation of the internationally-brokered road map peace plan, which he said calls for the dismantling of Palestinian terrorist organizations as an initial step.

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He did not say when the meeting with Abbas would take place or indicate if it was conditional on the release of Corporal Gilad Shalit, abducted by Palestinian militants with ties to the ruling Hamas movement in June. He said, however, that a meeting with Abbas could help in efforts to gain Shalit's release.

"The issue that is our first priority with the Palestinians naturally is the release of Corporal Gilad Shalit," Olmert said.

He praised Blair for working "actively to create stability throughout the Middle East."

The British leader expressed his support for a renewal of dialogue with Abbas despite Hamas' control of the Palestinian parliament and government.

He said that it was necessary to "re-engergize" the peace process, saying that "stability of Middle East affects Britain."

"It's very important that we see what we can do to re-energize this process," said Blair. "We are in a very preliminary stage of debating and talking about these things, but I hope very much that in the time to come that we can make progress."

Blair brushed aside suggestions that his Middle East visit was an effort to distract attention from internal disputes within his own Labour Party.

"People can be as cynical as they like, but I've been passionate about this issue... for many years and I'm not going to stop trying on it," he said.

The two also discussed Iran's nuclear efforts and the fragile UN-brokered cease-fire that brought an end to a monthlong war between Israel and Hezbollah.

Blair's handling of the conflict in Lebanon is a major cause of his political troubles. Many in his party were infuriated by his refusal to break ranks with U.S. President George W. Bush and call for a swift end to the fighting, interpreting that stance as a tacit backing of Israel's offensive.

Blair defended his position, saying it had taken time to negotiate a peace deal that would hold.

"We worked very hard to get the only cease-fire that was ever going to be sustainable, and that was one based on the political framework set out in Resolution 1701," he said.

Regarding Iran's nuclear program, Olmert said that Blair has played critical role in stopping the project.

"We will hold firm on the Iranian issue," the British leader said. "People recognize that it is important that Iran abide by obligations," he said.

Blair declined to say whether he would back sanctions on Iran if it does not comply with UN demands to halt uranium enrichment. Many in the international community believe the enrichment is part of a nuclear weapons program, but Iran says it is for peaceful power-generating purposes.

The meeting between the two was the first since a United Nations-brokered cease-fire in August halted a month of Israeli-Hezbollah fighting.

Olmert said that the Lebanese government needs to be in full control of the country, referring to Hezbollah's grip on the south of the country ahead of the war, and said that Israel has no conflict with the Lebanese government and people.

Blair said that the full implementation of United Nations resolution 1701, which led to the cease-fire after 34 days of fighting, would be "a major strategic advance."

Blair believes the region has been moving in the wrong direction recently, and hopes to help put the sides back on track, a spokesman told reporters traveling to Israel with the prime minister.

"What he hopes to do is get the momentum ... at least beginning to go back the right way," the spokesman said, speaking on condition of anonymity in keeping with government policy. "If you allow the situation to drift then inevitably you're going to end up with a sort of conflict we had this summer."

Israel waged a fierce war against Hezbollah after the guerrilla group carried out a cross-border raid, capturing two Israel Defense Forces soldiers and killing three others. In the 34-day war, 120 IDF soldiers and 39 civilians were killed, along with 854 Lebanese, most of them civilians.

Miri Eisin, a spokeswoman for Olmert, said ahead of the meeting that the two leaders would focus their talks on the Lebanon issue, Iran and the Palestinians.

Blair will meet with the families of the two soldiers captured by Hezbollah, and relatives of a third soldier being held by militants with ties to the ruling Hamas group.

Blair will also hold talks Sunday with Palestinian Authority Chairman Mahmoud Abbas in the West Bank. However, Blair will not meet with Palestinian Prime Minister Ismail Haniyeh of Hamas or other members of his government, which Britain and other Western countries do not recognize.

Haniyeh blasted Blair and his government in a column published Saturday in Britain's the Guardian newspaper, accusing him of having "one-sided" policies that hurt the Palestinians.

"At the heart of our region's problems is the Israeli occupation, which has brought about endless suffering and disasters. If you wish to do the right thing, Mr. Blair, then work for the end of occupation without further delay," Haniyeh wrote in the column.

Although it is likely Olmert and Blair were to discuss the conflict with the Palestinians, the Israeli leader sees no sees no way to restart peace talks with the Palestinians so long as Hamas is in power, Eisin said.

If Hamas renounces violence, recognizes Israel and accepts past peace deals - demands backed by the international community - Israel will be able to hold talks with the Palestinian government, Eisin said. Hamas has so far rejected the demands.

Israel, the United States and the European Union - including Britain - list Hamas as a terrorist organization and have boycotted the regime since it took power in March.

"If the new [Hamas] regime abides by the three conditions of the international community ... Israel will certainly agree to a resumption of negotiations," Eisin said.

Blair's spokesman in London said the trip is meant to help ease bitterness after the fighting in Lebanon and isn't meant to distract attention from the prime minister's problems back home.

Blair surrendered Thursday to a fierce revolt in his Labour Party and pledged to step down within a year.

Already weakened by the war in Iraq and his party's slide in opinion polls, Blair's handling of the fighting in Lebanon contributed to his downfall. In particular, Blair's refusal to break ranks with U.S. President George W. Bush and call for a swift end to the fighting was the final provocation for many once-loyal supporters.

His policy in Lebanon also has had repercussions in the Palestinian areas, where a group of prominent intellectuals published a statement Thursday saying Blair would not be welcome in the West Bank.