Egypt was holding continued contacts with Abbas and Olmert to cement the truce between the two sides and expand it from Gaza to the West Bank, Foreign Minister Ahmed Abul-Gheit was quoted assaying.

On Nov. 25, Abbas and Olmert had a fruitful telephone conversation, during which a mutual ceasefire as of 6:00 a.m. (0400 GMT) Sunday was agreed by the two leaders, though it has not been implemented effectively as there has been violent conflicts between Israeli troops and Palestinian militants.

While making the call for cementing the ceasefire, Abul-Gheit, meanwhile, welcomed the latest Olmert-Abbas meeting on Saturday as a positive step for re-building confidence between the two sides and an action that could lead to realizing the aspired peace.

Egypt was for any drive that would improve the living conditions of the Palestinians, especially with regard to free movement of people and trade between Israel and the Palestinian territories, said the top Egyptian diplomat.

Olmert and Abbas met and held talks on Saturday evening at Olmert's residence in Jerusalem. According to Israeli media, the two sides reached an agreement on a number of issues, and progress was made regarding the transfer of Palestinian tax revenues withheld by Israel for almost one year.

Abul-Gheit called on Israel to take tangible steps in order to alleviate the suffering of the Palestinian people.