JERUSALEM, Feb 15: In a sign of the Israeli government's determination to drive through the Gaza withdrawal plan, the interior ministry on Tuesday announced plans for construction of a new town in the southern Negev desert , which would accommodate 500 families after the withdrawal.

The two sides are also poised to transfer security control in parts of the West Bank. "We have an agreement on the withdrawals, starting with Jericho, which will involve the entire urban areas and not just the towns," Palestinian negotiations minister Saeb Erakat said, saying checkpoints around the towns would also be dismantled.

Palestinian prime minister Ahmed Qorei confirmed an agreement had been reached in principle on Jericho "but it still needs official approval" from Israel. But an Israeli defence ministry official told AFP that "there is still no agreement on the transfer of control in Jericho".

One of the issues holding up the transfer was the Palestinian's insistence that Israel hand over control in Al-Auja village, just north of Jericho, which lies on the main north-south highway running up the Jordan Valley.

Israel has refused, fearing for the safety of Israeli cars on that road, and has also said it would not dismantle checkpoints along the Jericho-Jerusalem road. Last week at a summit in Egypt, the two sides agreed that Israel would hand over security responsibility in five West Bank towns: Ramallah, Bethlehem, Qalqilya, Tulkarem and Jericho. -AFP