Israel and the Palestinians have reached a deal on Gaza border crossings after intense negotiations arranged by US Secretary of State Condoleezza Rice, Israeli Defence Ministry sources said.

Rice, who put her own reputation at stake by investing so personally in the negotiations, had postponed her departure to Asia for an APEC meeting staying in Jerusalem an extra day until she got a deal on opening the Gaza-Egypt border on Tuesday.

Access to Gaza is key to strengthening the impoverished strip's economy and giving a boost to chances for peacemaking after Israel's withdrawal from Gaza in September.

US officials scheduled a news conference in Jerusalem later on Tuesday for an announcement.

The Israeli sources said the sides had agreed to the presence of cameras at the Rafah border, and that Israeli and Palestinian officers would monitor the video feed from an operations room located several kilometres away.

Palestinians had insisted that the Israelis should not sit at Rafah.

Earlier impasse

Israel, which has kept control of Gaza's borders and air space since its withdrawal, has been under US pressure to reopen the crossing, Gaza's main outlet to the rest of the world. It has been largely closed since Israel withdrew.

Both sides had previously agreed to European Union observers at Rafah, and differences centred on Israeli monitoring of the crossing.
Israel had wanted a direct, online surveillance feed while the Palestinian Authority wanted control over the pictures and said a direct feed would impinge on its sovereignty.

Meetings

In her suite overlooking Jerusalem's Old City, Rice separately met senior Israeli and Palestinian negotiators, constantly amending texts on a laptop computer.

Initially, the Israeli delegation dealt with Rice by phone but later, Dov Weisglass, an adviser to Israeli Prime Minister Ariel Sharon, arrived for talks.

Israel Radio said Defence Minister Shaul Mofaz had also joined the negotiations.

International Middle East envoy James Wolfensohn, who has threatened to quit because of frustration over an impasse in negotiations over border crossings, left in the early hours.

Rice's visit, her fourth to the region this year, has also been overshadowed by political upheaval in Israel that threatens to bring down Sharon's coalition and force early elections.

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