The prisoners constitute one of the most sensitive issues between Israel and the Palestinians. Under the US-brokered Wye river agreement, Israel was to have released 750 prisoners.

However, when the first group was released, it emerged that most of them were thieves or other common criminals, not security prisoners those jailed for anti-Israel acts -- and this sparked angry Palestinian demonstrations.

Then-prime minister Benjamin Netanyahu said he would not release prisoners ``with blood on their hands''. However, the Palestinians maintain that only 250 of the more than 2,000 Palestinian security prisoners in Israeli jails have actually killed Israelis.

Others have killed Palestinians accused of collaborating with Israel, or wounded Israelis, or wereaccomplices of those who killed Israelis.

Haim Ramon, a minister at the Prime Minister's office, told army radio that the criteria for release of prisoners are being re-examined in an attempt to reach an accommodation with the Palestinians.

``The matter is being examined, especially with regard to prisoners who have been in jail for a long time,'' he told army radio.

Israeli Justice Minister Yossi Beilin, an architect of the Oslo agreements with the Palestinians, has said the government is considering a new definition of which prisoners have ``blood on their hands''.

The radio said Barak is offering to release 250 security prisoners before completion of their terms if Palestinian leader Yasser Arafat agrees to postpone implementation of part of the Israeli territorial withdrawal promised in the Wye accord. However, the Prime Minister's office denied that any such offer has been made.