"They will meet in Tel Aviv on Saturday night," the source told AFP on condition of anonymity.

No Israeli official was immediately available to confirm the report late Friday.

Mofaz and Dahlan were expected to discuss the planned transfer of security control in several West Bank towns and cities, the release of Palestinian prisoners and a halt to Israeli army operations in the West Bank, the Palestinian source said.

The transfer of security control is expected to take place following a top-level meeting between Israeli Prime Minister Ariel Sharon and new Palestinian leader Mahmud Abbas, likely to take place within a fortnight.