Israeli Prime Minister Ariel Sharon has decided to resume political contact "very quickly" with the Palestinian leadership, Israel's Public Radio reported Wednesday.

Aides to Sharon and Palestinian National Authority Chairman Mahmoud Abbas could meet as early as Wednesday evening, political sources were quoted as saying.

Meanwhile, Israel has suspended targeting Palestinian militants, fulfilling a key Palestinian demand for truce to end the four and a half years of violence.

Israeli security officials said on condition of anonymity that Israel has informed the Palestinians of the decision.

Sharon's order came as a goodwill gesture to Abbas who was exerting intensive efforts to secure calm in the territories and dissuade militants from firing rockets against Israeli targets.

Israel cut off all ties with Abbas after six Israeli civilians were killed in an attack at the Karni crossing on the border between Israel and Gaza nearly two weeks ago.

Abbas on Tuesday reached an agreement in principle with Hamas leaders in Gaza on the group's participation in the PNA's decision-making and in a future Palestinian government, sources involved in the talks said.

The sources said details of the agreement will be worked out after understandings have been reached with Israel on a mutual ceasefire.