Speaking to the cabinet, Sharon said east Jerusalem Arabs once had voted in the 1996 Palestinian elections, Ha'aretz quoted government officials as saying.

However, the cabinet made no decision on the matter, and the officials said the issue would be discussed further.Israeli Deputy Prime Minister Ehud Olmert also left open the possibility of allowing some residents in the Jerusalem area to vote in the Palestinian elections slated for Jan. 9, 2005.In an interview with the Army Radio on Sunday, Olmert, who also holds the portfolio of Minister of Industry and Trade, said for those living in neighborhoods that would be under the Palestinian control, Israel should consider allowing them to vote.But Palestinians, who remains under Israel's control in a future peace agreement, should not be allowed to take part in the voting,Olmert added.

Some Israeli officials, including Sharon, previously expressed opposition to allowing east Jerusalem's 228,000 Palestinians to vote, saying it would weaken Israel's claim to the city.Several months ago, Israeli police raided voter registration stations in east Jerusalem, preventing most residents from registering.

The Palestinian presidential elections were scheduled to be open on Jan. 9, 2005.

Under the Palestinian basic law, the elections should be held within 60 days to formally choose a leader to succeed the late Yasser Arafat, who dies on Thursday in a French military hospital outside Paris.

The Palestinian Legislative Council (PLC) speaker Rawhi Fattouh was named as the interim Palestinian National Authority (PNA)president until the elections.