Israeli Prime Minister Ariel Sharon and Labor Party Chairman Shimon Peres met Monday morning in the first formal step toward forging a unity government.

Labour party leader Peres arrived at Sharon's Jerusalem official residence at around 8:30 a.m. (0530 GMT) for a breakfast meeting.

It is said that the two sides are expected to reach a deal relatively soon.

Political sources noted after the meeting that Peres has agreed to work with Sharon to push ahead a Gaza pullout plan and pursue contacts on a unity government.

They agreed on supporting the Gaza plan, said the sources, adding that "Peres said he still has to get his party's mandate if Labour is to join a government."

Senior Labor Party lawmaker Haim Ramon told Israel Radio that the negotiations became a realistic option after three conditions were met: Sharon's government accepted the Gaza withdrawal plan, the ultra-nationalist National Union left the coalition in protest of the planned pullout, and the attorney general decided not to charge Sharon in a corruption case.

After the departure of far-right cabinet members who were angered at Sharon's Gaza plan, the Israeli premier has been exploring the possibility of bring Labor into government to push forward his contentious plan to pull troops and some Jewish settlers out of the occupied Palestinian territory.

In a recent interview, Peres said he would be willing to join a new government, but the timetable for the planned Israeli withdrawal from the Gaza Strip had to be brought forward first.

Source: Xinhua