The move came as Palestinian leader Mahmoud Abbas continued a dialogue in Gaza with Palestinian factions, militant groups and security chiefs aiming at reinforcing a ceasefire with Israel.

Senior Palestinian official Tayeb Abdel Rahim told reporters late Friday that Abbas would meet Saturday with Hamas and Islamic Jihad movements’ representatives and on Sunday with other factions.

Abbas Friday named General Mahmoud Asfour as acting police chief in the Palestinian territories after sacking three senior security and police leaders Thursday, include chief of police Saeb el Aajez.

Asfour, a veteran Palestinian police officer, who spent several years in his career as a police officer abroad, was the police chief when Abbas became the first Palestinian Premier under Yasser Arafat in July 2003.

Israel Friday decided not to respond to a series of mortar attacks on settlers in the Strip. Ra’anan Gissin, a senior adviser to Israeli Premier Ariel Sharon, said Israel would “give Abu Mazen (Abbas) time to take steps”.

He was speaking after an upsurge of violence in the Gaza Strip threatened the ceasefire which Sharon and Abbas declared at Tuesday’s summit in Sharm el-Sheikh, Egypt.

Militants of the radical Islamic Hamas movement fired 41 mortar shells and rockets at Jewish settlements in the Gaza Strip Thursday. They caused no casualties, but damaged some houses and greenhouses.

Chief Palestinian negotiator Saeb Erekat meanwhile said a meeting had been held late Friday with Israeli deputy premier Shimon Perez to discuss the release of Palestinian prisoners.

Erekat told Palestinian radio said that the Palestinian Authority proposed forming several committees to discuss the issues of wanted Palestinians and committees for the question of settlements.

Israeli radio reported that an Israeli ministerial committee for release of Palestinian prisoners would meet on Sunday where it would discuss the release of 900 prisoners.