Egypt, Israel, the Palestinians, the United States and the European Union have reached an initial understanding on a comprehensive settlement to the Arab-Israeli conflict, Egypt's official MENA news agency reported Tuesday.

Senior Egyptian sources were quoted as saying that a framework for taking actions toward achieving an all-around peace in the region has already been set, which involves a number of issues now being debated.

One of the issues is about an agreement on a Palestinian-Israeli ceasefire, by which a new Palestinian National Authority (PNA)would commit itself to stopping anti-Israel operations and controlling the situation in its territories.

Israeli Prime Minister Ariel Sharon, on his part, affirmed a halt to all Israeli army operations against the Palestinians, as long as the Palestinians honor their commitments and the PNA is able to take control of the situation.

Under the plan, Sharon, who sees no need in early stages to sign a ceasefire agreement until the PNA restores its administrative and security capabilities gradually, should remain committed to stopping military operations, as long as the other side remains committed as well.

In addition, an all-out effort should be made to ensure that the Palestinian presidential election will be held as scheduled on Jan.9 next year, so that the Palestinians could choose their leadership without any outside pressure.

Moreover, the Egyptian side discussed with Sharon and other Israeli officials Egyptian ideas regarding a working program on the implementation of the disengagement plan, the sources said.

They expected that political actions would begin in July next year.

Source: Xinhua