RAMALLAH, Sept 6: Palestinian Prime Minister Mahmoud Abbas submitted his resignation on Saturday in a power struggle with Yasser Arafat, dealing a possibly fatal setback for the US-backed roadmap.

Mr Arafat accepted the resignation, MPs close to the Palestinian supremo said.

Mr Abbas’s departure could ruin the roadmap and accelerate a slide back into violence after Palestinian militants scrapped a truce and Israel stepped up a campaign to assassinate their leaders.

Yasser Arafat had blocked Mr Abbas’s efforts to obtain security powers since appointing him under US pressure in April, but the resignation could provoke Israel into trying to deport him.

Mahmoud Abbas told a closed door meeting with parliamentarians that he had quit because of the power struggle and what he called a lack of support from Israel and the United States in peacemaking.

Top Palestinian negotiator Saeb Erekat said Mr Abbas would run a caretaker administration while Yasser Arafat “studies the options”.

Mr Arafat met lawmakers later, read out the resignation letter and said it was “unfortunate that Abbas has resorted to this action”.

Ariel Sharon’s office said Israel would not accept day-to-day control of the Palestinian Authority reverting to Mr Arafat “or anyone doing his bidding”.

Israel has sought to sideline Arafat, saying he has incited violence in the uprising against Israeli occupation in the Gaza Strip and West Bank.

“He is part of the problem and not the solution. He is a direct cause that threatens stability in the area,” an Israeli foreign ministry statement said.

Israel and the United States have backed Mahmoud Abbas as the main hope for reforms and peace moves while trying to isolate Mr Arafat.

Israel has confined the veteran Palestinian leader to his Ramallah headquarters for most of the last 20 months. Mr Abbas has travelled freely to meet Mr Sharon in Israel and US President George Bush in Washington, and attended a summit with both men in Jordan.

The roadmap, which envisages a Palestinian state in the West Bank and Gaza Strip by 2005, was already in jeopardy from the collapse of the ceasefire and paralysing disputes between the sides over who should take what step first.

ISRAELI ACCUSATIONS: Israel accused Mr Abbas of doing nothing to dismantle militant groups sworn to destroying the Jewish state. It says the truce, which they declared on June 29, fell apart because of the Hamas suicide bombing on Aug 19.