RAFAH, Dec 14: Israel and Egypt have reached a deal to allow Palestinian Prime Minister Ismail Haniya to cross into Gaza after Israel had closed the border, an Egyptian security source said on Thursday.

Hundreds of armed Hamas supporters gathered late on Thursday in front of the terminal building waiting for Mr Haniya to cross, chanting his name and firing into the air.

The Palestinian prime minister would be allowed to enter Gaza Strip, but would have to leave $35 million in cash that he was reported to be carrying after a tour of Arab states and Iran, the source said.

The money would be deposited into an Egyptian bank, which would transfer it to a Palestinian Authority account, the source said. Israel had closed the Rafah crossing shortly after Mr Haniya arrived there on Thursday.

“Defence Minister Amir Peretz ordered the closing of the Rafah crossing in order to prevent tens of millions of dollars from entering Gaza together with Mr Haniya,” an Israeli security source said.—AFP