Abbas, Olmert agree to set up negotiation team

Meeting the Palestinian leader face to face, Israeli Prime Minister Ehud Olmert offered yesterday to release Palestinian prisoners ahead of the Muslim holy month of Ramadan and agreed to set up a negotiating team to advance peace efforts ahead of a US-sponsored Mideast conference.

The three-hour meeting between Olmert and Palestinian President Mahmoud Abbas was the latest in a series of talks between the men aimed at reaching a "declaration of principles" ahead of the conference, expected in November.

In a potential sign of progress, the men agreed to set up negotiating teams to work on some of the key issues that would have to be resolved as part of a peace agreement, said Jacob Galanti, an Israeli government official.