RAMALLAH, West Bank, December 10 (IslamOnline & News Agencies) - The Palestinian high court ordered the release Tuesday, December 10, of Palestinian President Yasser Arafat's former top financier, jailed in May over arms smuggling charges as part of a deal to end Israel's siege on Arafat.

The decision to release Fouad Shubaki is subject to approval by Arafat, although the court's decision that he was not linked to the Karine A smuggling affair cannot be appealed, a senior Palestinian official told Agence France Presse (AFP), speaking on condition of anonymity.

Another Palestinian official, who also asked to remain anonymous, told AFP Shubaki was arrested "for political reasons" and would not be released now for fear for his life.

"It is impossible to release him now because Israel would attempt to kill or arrest him," he said.

Shubaki's lawyer, Hussein al-Shukhi, said he would suggest Arafat keep Shubaki inside his Jericho compound - but not as a prisoner.

Shukhi had said in August that a commission of inquiry set up by Arafat found his client not to be involved and recommended his release, which the high court finally approved four months later.

But Israeli government spokesman Avi Pazner was skeptical over the release order and said: "They cannot release him."

"His imprisonment is the result of an agreement between us, the Palestinian Authority, the United States and Britain.

"To release him, approval by all three will be necessary. We think he should stay where he is," Pazner said.

Arafat's Palestinian Authority (PA) gave similar reasons earlier this year to block the release of Popular Front for the Liberation of Palestine (PFLP) leader Ahmed Saadat, jailed at the same time over the killing of the Israeli tourism minister in retaliation for Israel’s assassination of PFLP leader Abu-Ali Mostafa.

Shubaki was accused by Israel of allegedly helping plan a foiled bid to smuggle more than 50 tonnes of arms and explosives from Iran to the Gaza Strip last January, after it intercepted the Palestinian-captained Karine A in the Red Sea.

Iran categorically denied the charge, but Arafat was reported to have allegedly accepted responsibility for the smuggling attempt.