Prime Minister Ehud Olmert earlier this month told Mr Abbas that he would free some of the 9,000 Palestinians held by Israel to help energize peace talks between the two sides.

The prisoner issue is an emotional one for Palestinians, who see Israel's justice system as unfair and have elevated prisoners to hero status.

The move aimed "to demonstrate that the release of prisoners can be achieved through talks and not through violence and the kidnapping of soldiers."

In the West Bank, Palestinian Prime Minister Salam Fayyad welcomed the gesture, but said Israel should give freedom to even much more prisoners.

Mr Olmert has said he is determined to press ahead with peace efforts as long as he is in office.