The New Nation - Internet Edition

AFP, Jerusalem

Israeli Prime Minister Ehud Olmert said on Tuesday that "real progress" had been made in talks with the Palestinians and "understandings and agreements have been reached on very important matters".

"The discussions we are conducting with the Palestinian Authority are serious and very significant," Olmert said on the eve of a visit to Israel by US President George W. Bush.

"We are making real progress and understandings and agreements have been reached on very important matters, although not on all of them."

Olmert said he hoped a comprehensive agreement could be reached with the Palestinians although he made no explicit mention of the January 2009 target date set by Bush.