Canada will send 20 observers to monitor historic Palestinian elections early next month, Canadian Foreign Minister Pierre Pettigrew said Thursday.

The Canadian contingent to the Jan. 9 election will be part of a European Union monitoring force expected to total 260 members. The Canadian government will contribute 1.7 million US dollars to the monitoring programs run by the United Nations and by local authorities to fund the election, the minister said in a statement.

"Free and fair presidential elections will be an important element in giving credibility and hope to a revived peace process," he said, adding that Canada supports a just, lasting and comprehensive peace settlement between Palestinians and Israelis.