TEL AVIV, Dec 12: Israel's opposition Labour party said on Sunday it had set no conditions for joining Prime Minister Ariel Sharon's government, paving the way for a broad coalition that could push through his Gaza withdrawal plan.

Sharon needs Labour to rebuild his shattered coalition and overcome right-wing rebels opposed to withdrawing troops and settlers from the occupied Gaza Strip under a plan welcomed by Western countries as a possible step to Middle East peace.

"Let this be clear: There will be a government," chief Labour negotiator Haim Ramon told Army Radio. "The question is whether we will sit in this government with significant cabinet portfolios, or if we enter this government without portfolios."

Sharon and Labour leader Shimon Peres began coalition talks on Saturday after receiving a nod from their respective parties. Sharon lost his parliamentary majority by firing his biggest coalition partner, the secularist Shinui party, on Dec 1 in a spat over funding for religious groups.

Far-right allies had left earlier over the Gaza plan. Fearing early elections, he has been scrambling to rebuild his government and push through the initiative. -Reuters