Israeli and Palestinian sources say they have reached a draft agreement to end the standoff at the Church of the Nativity in Bethlehem.
Details have not yet been published, but it is understood that some of the Palestinians whose arrest Israel has been demanding will go to Gaza and others will be exiled, perhaps to Italy.
The deal comes as Israeli Prime Minister Ariel Sharon arrives in the United States where he is scheduled to meet President George W Bush on Tuesday.
More than 200 Palestinians, including about 30 gunmen, fled into the church 2 April.
Sunday, May 05, 2002
'Deal reached' to end Bethlehem siege
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