Israel was outraged by the decision by Palestinian Authority President Mahmoud Abbas to release a Palestinian militant who was jailed for murdering an Israeli minister.

The prisoner, Ahmed Saadat, was accused by Israel of ordering the assassination of Rechavam Ze'evi in 2001. He is a leader of the Popular Front for the Liberation of Palestine which has committed numerous terrorist acts against Israelis over the past few decades.

'The two men were placed by Israel on the wanted list and the agreement we have with Israel is that once it leaves our cities, the fugitives will have immunity. Therefore, they will be freed, and the Israelis are aware of this,' Abbas told Reuters.

An Israeli government official doubted that Abbas would go ahead with the release of Saadat or Fuad Shubaki who was involved in the illegal smuggling of arms to the Palestinian Authority in the Karine A incident. Both are being held in Jericho.

'The two are incarcerated in Jericho, where they are monitored by US and British officials. Abu Mazen [Abbas] would be violating every agreement if he decides to free the two,' the official told the Israeli daily, 'The Jerusalem Post.'

Israeli Defense Minister Shaul Mofaz said, 'If the Palestinians dare to release them, Israel will put their hands on them quicker than they realize.'

Deputy Defense Minister Ze'ev Boim told the 'Jerusalem Post,' 'Not only do Abbas's statements violate agreements reached with Israel, but they also violate agreements made by the late Yasser Arafat, who guaranteed, not only to Israel, but also to the United States and Britain, that Rechavam Ze'evi's murderers would remain behind bars.'

Analysts say Abbas may be attempting to gain support for a cease fire from militant groups by releasing Saadat and Shobaki.

Saadat himself remained skeptical. 'This talk about my release is propaganda,' Saadat said to Reuters from his cell. 'They want to show that they are exerting efforts to release us. But in fact they can't. Abu Mazen cannot even remove this communications scrambler on the ceiling.'

Regardless, Sharon has indicated that the turnover of Jericho and other West Bank cities to the Palestinian Authority will go on as planned.