A senior Israeli official Tuesday was quoted as saying that Israel should consider revising its policy of arresting wanted Fatah militants if Fatah stops receiving funding from Iran and refrains from attacking Israel.

Israel Radio reported that the official said Fatah's militants, including the Al-Aqsa Martyrs Brigades, have become the most resolute armed force in the struggle against Hamas.

The official said that Israel should consider a policy change that would enable wanted Fatah militants to come out of hiding and openly join the ranks of Palestinian Authority Chairman Mahmoud Abbas' security forces.

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Prime Minister Ehud Olmert said Monday that he would seek cabinet approval for the release of 250 Fatah prisoners held in Israeli jails, as part of a package of steps aimed at strengthening Palestinian Authority Chairman Mahmoud Abbas.

Speaking at the close of a four-way summit with Abbas, Egyptian President Hosni Mubarak and Jordan's King Abdullah II, Olmert said only prisoners who Israel does not hold directly responsible for deaths of its citizens would be released.

Palestinian Authority Chairman Mahmoud Abbas has asked Israel for permission to bring Fatah forces based in Jordan to the West Bank to try to shore up his control after Hamas's Gaza takeover, Israeli officials said on Tuesday.

"The Palestinians put in a request yesterday to transfer the Badr Brigade from Jordan to the West Bank," a senior Israeli government official told Reuters. "It is being evaluated and a decision will be made soon."