After weeks of stalemate, Israel agreed to transfer security responsibility to the Palestinian Authority in the town at talks Monday between Israeli Defence Minister Shaul Mofaz and Palestinian interior minister Nasr Yussuf.

"We are totally ready to take control in the governorate of Jericho. We are ready to assume our responsibilities fully at both a security and civilian level," said Jericho governor Sami Musallam.

Israeli troops are to pull back from the quiet desert town and its surrounding area from Wednesday in a four-week process, a top Palestinian official said.

Chief Palestinian negotiator Saeb Erakat told AFP that Israel would leave the town and two checkpoints on Wednesday.

The main DCO checkpoint -- which houses the office for coordinating with the Palestinians -- will be dismantled and the remaining urban area evacuated within four weeks.

"We hope that this agreement will be implemented accurately," Erakat said.

A similar transfer in the northern West Bank city of Tulkarem is expected to take place on Friday, a Palestinian official has said.

The handover of security in five West Bank towns -- Ramallah, Bethlehem, Qalqilya, Tulkarem and Jericho -- was one of the key issues agreed at a landmark peace summit in Egypt early last month.

Movement on the transfers comes as Palestinian factions were to begin marathon talks in Cairo on Tuesday to decide on whether to agree to a formal ceasefire with Israel.

Palestinian leader Mahmud Abbas, who was to attend the conference following an overnight visit to Saudi Arabia, said last week he expected the armed factions to agree to a ceasefire at the meeting.

But Israeli Prime Minister Ariel Sharon has said a ceasefire agreement alone is not enough and called on Abbas to dismantle radical Palestinian groups.