Israel and the Palestinian Authority on Saturday reached a deal granting amnesty to 178 wanted members of Fatah's military wing.

Meanwhile, Al-Aqsa Martyrs' Brigade militants had already begun signing forms guaranteeing them a pardon in return for their declaration they would cease terror activity.

The list of Al-Aqsa Martyrs' Brigade militants in the said deal include senior group figures such as Zakaria Zubeidi, the head of the Al-Aqsa Martyrs' Brigade, and the Ramallah head of the group, Kemal Renam.

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The deal will also contain the provision that the militants put down their arms, and recognize and remain with Palestinian security forces in the West Bank under Abbas' leadership, a Palestinian news agency reported.

Militants that will cooperate with the PA security forces and won't be involved with terror activities for three months will be allowed to leave the territory under full Palestinian control, known as Area A, and be able to travel abroad.

Abbas aide Saeb Erekat said talks were still underway on the security arrangements, part of which would "end the hunt for these people which the Israelis deem as wanted."

Prime Minister Ehud Olmert's office had no immediate comment on the talks, but a government official familiar with the deliberations said: "This is something we're considering."

The government official said Olmert planned to meet with Abbas on Monday.
Erekat said the leaders would meet in the coming days but he did not provide a specific date.

Last week, the cabinet approved the release of 250 Palestinian prisoners as a gesture to Palestinian Authority Chairman Mahmoud Abbas. It was agreed that the prisoners will all be members of Fatah, residents of the West Bank, and they will have no "blood on their hands" - the euphemism used to describe Palestinians imprisoned for participating in the killing of Israelis.