Ramallah, Nov 08: The central committee of Yasser Arafat's Fatah movement has reached an agreement on the formation of a new government, a source close to the Palestinian leader has said. "The Fatah central committee reached a compromise that was approved in a vote by the majority of its members," the source told a news agency on condition of anonymity yesterday.

The deal, reached late last night, was the result of a compromise between Arafat and Prime Minister Ahmed Qorei, who had been at loggerheads over the appointment of a new Interior Minister. Qorei has renounced efforts to persuade Arafat to accept his candidate for the post, General Nasser Yussuf, and the post will go to a close associate of Arafat's, Hakam Balaawi, the source said.

But Balaawi's responsibilities will be limited to civil issues and the all-important job of security will be handed to the supreme National Security Council, of which both Arafat and Qorei are members.

"The interior (portfolio) has been given to Hakam Balaawi but his prerogatives have been limited to the civilian domain. Security issues will be the responsibility of the National Security Council," the source said. Bureau Report