Israeli Prime Minister Ariel Sharon and Palestinian Prime Minister Mahmud Abbas were expected in Washington at the end of the month for meetings with U.S. President George W. Bush which could give peace efforts new momentum.

Despite earlier uncertainty due to deep divisions within the Palestinian leadership, Israeli Defense Minister Shaul Mofaz met Palestinian Minister of State for Security Affairs Mohammad Dahlan Thursday evening at the Erez crossing between Israel and the Gaza Strip.

Mofaz pressed Dahlan "to act more quickly against radical groups so the peace process can continue," Israeli public radio reported.

"The meeting was short and serious," a Palestinian security official said. "The issue of the release of all (Palestinian) prisoners was addressed."

The U.S.-backed "roadmap" for peace had been picking up momentum after a Palestinian truce announcement and the Israeli army's withdrawal from much of Gaza and the West Bank city of Bethlehem, but the process has since stumbled on the issue of the release of Palestinian prisoners.

The Palestinians demand the release of all 6,000 prisoners detained by the Jewish state, but Israel has agreed to free only 350 and in any case would not release any members of the resistance groups Hamas or Islamic Jihad.

The security chiefs also discussed Israeli withdrawals from Palestinian villages, but Mofaz said no further pull backs would take place until the Palestinian Authority cracked down on resistance groups in areas it recently took over.

Around the time of the Erez meeting, Israeli troops shot and wounded two Palestinians who infiltrated southern Israel from the Gaza Strip late Thursday, while two other attackers were arrested, military sources said, reported Agence France-Presse (AFP).

Meanwhile, bodyguards for Dahlan shot and wounded a Hamas overnight, witnesses reported.

As Dahlan's convoy was returning from the meeting at the Erez crossing point with Mofaz, the bodyguards opened fire on the Hamas activist who was on the roadside.

Mohammed al-Simri, a 30-year-old member of Hamas' military wing, was reportedly armed at the time of the incident.

Hamas leader Abdelaziz al-Rantissi told AFP that the bodyguards "had no reason to open fire and we demand legal action against the one who wounded our activist."

In a separate related development, Egyptian intelligence chief Omar Suleiman is expected to arrive in the Palestinian territories Saturday or Sunday for talks, a senior Palestinian official said.

Suleiman will hold meetings with Arafat and Abbas, the official told AFP Friday, on condition of anonymity.

Suleiman, a key behind-the-scenes mediator between Palestinian resistance factions, is making the visit as several factions have reaffirmed their commitment to a truce they declared in late June.

An Egyptian military delegation headed by General Mustafa Buheeri is currently in the Gaza Strip to meet with Palestinian groups and help bolster peace efforts.

The visit also comes amid alleged friction between Arafat and Abbas on how to handle talks with Israel.

The issue of detainees is getting more complicated

Israel has always rejected any sort of international peacekeepers on the ground to monitor the situation and separate the occupation forces from the Palestinians. Washington, in more than one occasion had to use its veto power to block Security Council resolutions authorizing such a move.