Tuesday, November 15 2005 18:25 Hrs (IST) - World Time -

Jerusalem: In a landmark development, Israel and the Palestinians have reached a US-mediated agreement on opening the Gaza-Egypt border crossings and permitting freer movement of Palestinians.

Announcing this today after holding marathon talks with both sides here, US Secretary of State Condoleezza Rice said the deal was a 'big step forward' in strained Israeli-Palestinian relations.

As per the agreement, the main Rafah border would be tentatively opened on November 25, and construction of a Gaza seaport would begin.

Israelis and Palestinians, bruised by nearly five years of bloody fighting, are learning to establish 'patterns of cooperation,' Rice said.

For the Palestinians, who for the first time since 1967 were given control over the Gaza Strip crossings, it was a major step towards independence, she said.

Defense Minister Shaul Mofaz told the local media that the Egyptians have been updated on the agreement and "This is another phase in the framework of the trust-building steps between Israel and the Palestinians".

"The agreement can serve as a foundation for continued cooperation in the region", Mofaz added.

Palestinian customs officials will be posted at Kerem Shalom crossing between Israel and Gaza, with Israeli inspection of goods passing through, while at Rafah crossing there will be a communication center where people crossing the border will be filmed, Israel Radio reported.