AL QUDS, Dec 19: Israeli Prime Minister Ariel Sharon approved the release of 170 Palestinian prisoners on Sunday as he looked to bolster the new PLO chairman Mahmud Abbas and cement his own hold on power by finalizing arrangements for a new broad-based coalition.

A statement from Sharon's office said the decision to sanction the releases was made during a meeting of a special ministerial commission headed by the prime minister. It did not specify when the releases would take place. No prisoner deemed to have "blood on their hands" will be set free and Internal Security Minister Gideon Ezra said all of the prisoners were coming to the end of their sentences.

Israeli radio reported that 50 were in prison for illegally entering the country. The others were all members of the mainstream Fatah movement and not members of the radical Isalmic movements Hamas or Islamic Jihad, it added.

The names of those who are to go free would be posted on the justice ministry's website 48 hours beforehand. The decision should be a timely boost to Abbas, who is running to replace the late Yasser Arafat as president of the Palestinian Authority in an election on January 9.

Abbas was heavily criticized when he served as prime minister last year for failing to secure the release of more prisoners. Sharon also faced accusations that his lack of generosity had undermined his Palestinian counterpart.

In another apparent olive branch to Abbas, Sharon recently indicated that he was willing to coordinate his plan to withdraw from the Gaza Strip next year with Abbas after previously intending the pullout to be a unilateral measure. The controversial Gaza plan has been fiercely opposed by Sharon's traditional supporters, leading to the crumbling of his coalition.

Sharon has been without a parliamentary majority for more than six months but is now on the verge of stitching together a new government which should see the main opposition Labour party sitting down in cabinet with ministers from his own Likud faction.

Sources in both parties said a formal coalition agreement could be signed later in the day or on Monday with the new government taking charge towards the end of the week after Labour decides which of its MPs will fill the eight seats it has been given in the cabinet.

One of the sticking points appears to be over the position of Labour leader Shimon Peres who is expected to be named deputy prime minister. Ehud Olmert, Sharon's current official number two, told army radio on Sunday he was not prepared to give up his position.

"The powers of Mr Peres will be determined by the prime minister just after the formation of the government," said Likud negotiator Yoram Raved, who spoke of a few "technical problems". -AFP