Yasser Arafat will retain control of security forces and peace negotiations even after his deputy Mahmoud Abbas is appointed prime minister, a senior Palestinian official said Sunday.The deal would sidestep key reform demands by Israel and the United States that Arafat hand over authority to a powerful prime minister and retain only a ceremonial role. The two countries have banned their officials from meeting with Arafat, charging that he has not taken steps to stop Palestinian violence.

Arafat made the agreement at a meeting Friday with Abbas, also known as Abu Mazen. Arafat said the Palestine Central Council, a PLO policymaking body, on Sunday approved the appointment of Abbas, whom he called "my brother."

Council head Riad Zanoun said Arafat has the power to appoint and dismiss the premier, whose "duty will be to help President Arafat."

Zanoun added that Abbas would "be in charge of the negotiating file."

The Palestinian legislature was to meet Monday to choose Abbas as premier. Approval of the deal is considered automatic, since their Fatah movement dominates the parliament.

Arafat agreed to name a prime minister last month, giving in to pressure from the United States, Israel, Europe and his own people for wide-ranging reforms of his regime. Arafat supporters counter that he is their elected president.

Abbas Won't Accept A Ceremonial Portfolio

Abbas had said he would not assume the post if it is only ceremonial, without executive duties. Arafat, who has been the sole leader of the Palestinian movement for nearly four decades, has been reluctant to give up any of his control.

A Palestinian official, who spoke on condition of anonymity, said Abbas would have the authority to name a new Cabinet, and a number of ministerial changes are expected. In June, the parliament forced Arafat to reshuffle his Cabinet.

Also, Abbas would oversee the work of the ministers and would be empowered to convene the Cabinet by itself, instead of the weekly meeting of the "Palestinian leadership," which includes the Cabinet, PLO executive committee and heads of security services.

However, the Palestinian leadership, controlled by Arafat, would have authority over negotiations with Israel, the United States and other international parties. Abbas could take part in negotiations, but he would have to report to Arafat.

Many Israelis have met Abbas and favor his appointment, noting that he has publicly criticized the violent Palestinian uprising, which began in September 2000 and is still going on.

PHOTO CAPTION

Mahmoud Abbas, a founder of the Fatah movement and leading figure in peace talks with Israel, leaves the PLO's Central Council session at Palestinian leader Yasser Arafat's compound in the West Bank town of Ramallah, Sunday, March 9, 2003. AP Photo/Muhammed M