Israel on Sunday approved the release of 170 Palestinian prisoners in a goodwill gesture toward Egypt and the new Palestinian leadership.

The release was part of a deal reached with Egyptian President Hosni Mubarak earlier this month that brought home an Israeli jailed by Egypt on espionage charges.

Prime Minister Ariel Sharon called Sunday's decision by a ministerial committee a "goodwill gesture" and spoke of "deep friendship" for the Egyptian president.

A senior Israeli official said the move was also meant to promote reconciliation with the new Palestinian leadership ahead of Jan. 9 presidential elections.

The official, speaking on condition of anonymity, said Israel would consider further releases if the Palestinians take action against militants.

Israel is holding an estimated 7,000 Palestinian prisoners, many accused of security-related crimes. Sharon's office said prisoners actively involved in attacks on Israelis would not be released. The prisoners are to be let go next week, it said.

Palestinian officials have long demanded the release of all prisoners, and the issue is high on interim leader Mahmoud Abbas' agenda.

There was no immediate Palestinian reaction to Sunday's announcement. But Palestinian officials have criticized previous releases as inadequate and said Israel should coordinate the releases with them.

The Israeli Cabinet agreed to the prisoner release last week, and ordered the committee to work out the final details.

Source: Agencies