The New Nation - Internet Edition

AFP, Jerusalem

Israel's embattled Prime Minister Ehud Olmert still believes a peace deal with the Palestinians is possible by year's end despite a looming vote to replace him, his spokesman said on Tuesday.

"The prime minister believes that the door to an agreement with the Palestinians is not closed and it is possible to achieve this goal by the end of the year," Mark Regev told AFP.

Olmert was to meet Palestinian president Mahmud Abbas later in the day for their last meeting before his centrist Kadima party holds a leadership vote Wednesday to choose his successor. The beleaguered prime minister had said he would step down after a new party leader is chosen so he can battle a flurry of corruption allegations that could lead to criminal indictment.

But Regev said Olmert would continue to "assume all responsibilities" even after the vote. Olmert is expected to serve as interim prime minister until a new government can be formed, which could take weeks or even months. In the meantime Olmert hopes to draw up a so-called "shelf agreement" with Abbas outlining the results of their talks, one that could be handed over to a new government. Olmert has met with Abbas roughly twice a month since US-sponsored peace talks were formally relaunched in November with the expressed goal of resolving the decades-old conflict by the end of the year.