Israel has freed 500 Palestinian prisoners in a goodwill gesture toward the Palestinian Authority.
The Israeli military says the prisoners were released at checkpoints in the West Bank and Gaza Strip early Monday.
400 more prisoners are due to be released in coming weeks, and another 39 Palestinians deported to Europe have been granted permission to return.
Sunday, Israel's cabinet approved Prime Minister Ariel Sharon's plan to withdraw Jewish settlers from the Gaza Strip, and modified the route of Israel's West Bank separation barrier to take in less Palestinian land.
Meanwhile, in Ramallah the Palestinian parliament has postponed a vote for the new cabinet of President Mahmoud Abbas.
In a stormy session Monday, many lawmakers complained the lineup contains few new faces and too many ministers associated with corruption.
News reports say Mr. Abbas may change the cabinet before re-submitting it to parliament.
Information for this report is provided by AP, AFP and Reuters.