Jerusalem: Israel today (Nov 10, 2004) agreed in principle to allow a burial for ailing Palestinian leader Yasser Arafat at his headquarters in the West Bank town of Ramallah.

The decision was taken at a meeting of the Israeli security cabinet headed by Prime Minister Ariel Sharon, the Army Radio reported.

Sharon convened the meeting of his security service chiefs and senior ministers, following Palestinian leaders' declaration that they would like to bury Arafat, who is comatose in a Paris hospital, at his Muqata (headquarters).

Palestinian Cabinet Minister Saeb Erekat said Sharon's office called him and informed him of "their acceptance of our request to bury Arafat in Muqata".

Israel has in the past stated that it would prefer a Gaza burial for the Palestinian veteran, completely ruling out the possibility of Jerusalem in any case, but seems to have resigned to the demands on Ramallah.

Arafat's headquarters in Ramallah is just a few kilometres from Jerusalem, but Erekat said the Palestinian leader's body will eventually be moved for burial in East Jerusalem's al-Aqsa Mosque compound when peace is reached with Israel.

"I think it (the burial in Ramallah) will be temporary and one day, when we have peace and we are alright as neighbours, President Arafat's body will be moved to East Jerusalem, to the al-Aqsa Mosque," he told the Army radio.

Meanwhile, Egypt has offered to host a funeral service for Arafat in Cairo, a Palestinian official said.