Israeli Prime Minister Ariel Sharon and Palestinian President Mahmoud Abbas have accepted an invitation for a summit in Egypt next week.

Egyptian President Hosni Mubarak invited the two leaders to meet on Tuesday, Sharon's office said. Jordan's King Abdullah II will also attend.

Sharon's office made the announcement after Egyptian intelligence chief Omar Suleiman held an unexpected meeting with the Israeli leader in Jerusalem on Wednesday.

Egyptian President Hosni Mubarak (AP file photo)

The invitation comes after weeks of lessening tensions between the two sides.

Last week, Sharon spoke of a possible "historic breakthrough" in relations.

Israeli officials have been encouraged by the deployment of Palestinian security forces in Gaza to stop attacks on Israelis and the drop in violence since Abbas began negotiating with militants to halt attacks on Israelis.

Israel's security cabinet was to meet Thursday to approve a limited prisoner release of Palestinians and a gradual handover of several West Bank towns to Palestinian control.

The summit will mark Sharon's first meeting with Mubarak since he became prime minister in 2001. Mubarak has refused to host the Israeli leader in the past.