Israeli Prime Minister Ehud Olmert and Palestinian National Authority (PNA) Chairman Mahmoud Abbas ended two hours of talks in a "very positive atmosphere" at the prime minister's residence in Jerusalem on Monday, Israeli officials said.

"The meeting is a very positive meeting," said Olmert's spokeswoman Miri Eisin to Xinhua, adding that "Both sides discussed security, economic, civilian and humanitarian issues, and then talked about political horizon."

According to Eisin, Olmert and Abbas also reviewed the progress that had been made since their latest meeting on June 25.

"The Palestinians want to go a lot faster. The average Israelis would like to go a lot slower. We have to find something that is acceptable to both sides," she said.

Before the meeting, Olmert has authorized a package of goodwill gestures aimed at bolstering Abbas and his emergency government based in the West Bank after the violent takeover of the Gaza Strip by Fatah's rival, the Islamic group Hamas.

Among the measures is the release of 250 members of Fatah and the various factions of the Palestinian Liberation Organization held in Israeli prisons, transfer of the withheld tax revenues as well as a conditional immunity to 178 Fatah-affiliated militants wanted by Israel.

Eisin said Olmert would present the final list of prisoners to be released to a ministerial committee on Tuesday. Israel would begin to release prisoners as early as Friday after a 48-hour legal review.

Meanwhile, Olmert's spokesman Jacob Galanti said after the meeting that 85 percent of the prisoners would come from Abbas' Fatah faction, with the remainder coming from smaller Palestinian parties. "None will come from Hamas," he said.

Moreover, Israeli sources said on Monday that Olmert and Abbas also agreed to meet again in two weeks, likely in the West Bank town of Jericho.

Olmert and Abbas agreed to try to work toward peace at a summit in the Egyptian resort of Sharm el-Sheikh on June 25, chaperoned by Egyptian President Hosni Mubarak and Jordan's King Abdullah.

(Xinhua News Agency July 17, 2007)