Having initially said it would release 350 prisoners as part of the peace "roadmap" process, Israel could now free 450, the station said.

The announcment came at a time when Palestinian minister for prisoners' affairs, Hisham Abdelrazzaq, and Avi Dichter, head of the Israeli internal security services Shin Bet, were due to meet in the Gaza Strip.

A defense ministry spokesman stressed that "no decision has been taken" on whether to release more prisoners, but did not deny the news.

"Such a decision can only be taken by the ministerial commission which will meet on Wednesday," the spokesman said.

Israeli Prime Minister Ariel Sharon is to hold a meeting of the commission "to establish a list of the prisoners who will be freed", his office had already announced.

A meeeting between Sharon and his Palestinian counterpart Mahmud Abbas on Sunday broke up with no new initiative on the issue of prisoners.

The Palestinians are demanding the release of all 6,000 of their people they claim are held in Israeli jails.

The Israeli cabinet authorised the release of 350 prisoners on July 6, but that figure did not include any members of the the militant Hamas or Islamic Jihad movements or anyone involved in attacks which had caused death or injury.

WAR.WIRE