Palestinian leader Yasser Arafat is welcoming a reported Saudi proposal for achieving peace between Israel with the Arab world.
It calls for Israel to pull out of all territory occupied in the 1967 Mideast War, including Arab East Jerusalem.
Sunday's New York Times quotes Saudi Crown Prince Abdullah saying Israel could have fully normal ties with the Arab world in return for its withdrawal.
Mr. Arafat says Crown Prince Abdullah's position shows clear support for efforts to bring peace to the Middle East and the creation of a Palestinian state while giving Israel security.
The crown prince says he had planned to make the peace offer in a speech to the Arab summit set for next month in Beirut. But the he says Israeli Prime Minister Ariel Sharon's policies on the Palestinians have derailed that plan.
The Associated Press quotes Israeli officials saying there can be no official response until the proposal is formalized. But AP also quotes a spokesman for Mr. Sharon as saying Crown Prince Abdullah's reported ideas would make a contribution to peace in the region, if he presents them.