Mofaz told ministerial colleagues that "the ball is now in the Palestinians' court" to show they are prepared to take on militants, according to a government statement after the weekly cabinet meeting here.

Israeli and Palestinian officials were meeting late Sunday to finalise the transfer of control in the towns of Qalqilya and Jericho in coming days as well as discuss a similar move in Ramallah and Tulkarem which would follow later.

The Palestinians have argued that they are in no position to move against the hardliners in areas which remain under Israeli control. They also claim that any crackdown could lead to civil war.

Mofaz said that the handover in Ramallah and Tulkarem "will be conditional on a resolution of the problem of the fugitives in each city" in reference to wanted Palestinian militants.

"Nothing is automatic and Israel has no intention of making concessions on its security needs and demands," the statement added.

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