BETHLEHEM, April 26: Israeli soldiers besieging Bethlehem’s Church of the Nativity shot and wounded two Palestinians inside on Friday and the army said a “military option” could end the 23-day-old standoff.

“We do not want to prolong this, therefore we could resort to a military option,” army spokesman Captain Joel Leyden told reporters, saying that talks with Palestinians aimed at resolving the impasse could not be pursued indefinitely.

The shooting, and the talk of military action, came a day after US President George W. Bush again called for a peaceful end to the stalemate at one of Christianity’s holiest sites.

Israel has previously vowed not to storm the church. Hospital officials in Bethlehem said people inside the church had told them by phone one of the wounded men was a civilian and the other a Palestinian intelligence agent.

Gunfire has often erupted around the church since Palestinian fighters took refuge there on April 2 to escape troops advancing into Bethlehem as part of the West Bank offensive.

Israel has been negotiating with a Palestinian team. The Palestinians deny anyone is being held at the church against their will.

On Friday, the Israeli army said it had acceded to Palestinian negotiator Salah Taamari’s demand to meet President Yasser Arafat for consultations before resuming talks.

Arafat is himself under siege, with Israeli tanks and troops surrounding his headquarters in the West Bank city of Ramallah.

Taamari said he would meet the Palestinian leader there on Saturday morning.

The army, which allowed nine Palestinian youths and the bodies of two men killed by Israeli fire out of the church under guard on Thursday, said Taamari could help effect more releases.

“Principles that could facilitate the release of more of the hostages will be presented to Arafat. If Arafat is in concurrence with these principles, then this could lead to a release of all the hostages,” Leyden said.—Reuters