HIGHLIGHTS 13 Would Be Exiled to Italy, 26 to Be Sent to Gaza. || Five Palestinians Detained in Beit Sahur & Near Nablus||4 Palestinians Killed Early Tuesday As Occupation Forces Enter Tulkarm||STORY: A deal was struck Tuesday to end a month-long standoff between the Israeli army and Palestinian militants holed up inside Bethlehem's Church of the Nativity, Palestinian sources said. They told Reuters that under an accord approved by Palestinian President Yasser Arafat, 13 Palestinian militants inside the church would be exiled to Italy while 26 others would be sent to the Gaza Strip.

According to the sources, negotiators are still seeking Italy's approval and there are two other small points that need to be finalized.

An Israeli occupation army spokesman declined to confirm or deny the information.

The announcement comes after 48 hours of intensive talks - mediated by the United States and the European Union.

Two Palestinian officials are currently in the church presenting the proposal to those inside.

If accepted, the militants are expected to be moved later on Tuesday.

Officials have also been sent ahead to Italy and Egypt to prepare the way for the exiles - Rome has yet to agree to the deal.

There has been no indication yet that the Israeli occupation army have begun the withdrawal of its occupation troops from Manger Square, where the church is situated.

During the siege, Israeli occupation troops have shot and killed seven people who were inside the church compound and wounded several.

TWO RESISTANCE MEN KILLED IN SOUTHERN ISRAEL, TWO OTHERS AT KARNI CROSSING, TWO OCCUPATION SOLDIERS WONDED

Early Tuesday, Israeli tanks reportedly staged an incursion into the northern West Bank town of Tulkarm.

And in one incident, two Resistance men were killed after they slipped into southern Israel near the Kissufim crossing point on Monday.

The occupation army said two of its soldiers were wounded during a four-hour gun battle.

Palestinian sources identified the dead men as members of the armed wing of the Palestinian Resistance Jihad movement.

Israeli occupation troops also shot dead two Palestinian Resistance men who broke through an Israeli military checkpoint at the northern crossing of Karni.

One of the Resistance men was reportedly wearing an explosives belt. Palestinian officials identified the two men as members of Hamas.

In other violence, Israel radio reported three attempted shootings and bombings targeting Jewish settlers in the West Bank Monday evening but said nobody was injured.

Separately, five Palestinian militants were detained in continued Israeli army operations against Resistance bombers, one in Beit Sahour east of Bethlehem and four in a village near Nablus, an army spokesman said.

SHARON MEETS POWELL, RUMSFELD

In Washington, Israeli Prime Minister Ariel Sharon had 45 minutes of talks with Powell and then met Defense Secretary Donald Rumsfeld. No details of the meetings were released.

Sharon was to see President Bush Tuesday at the White House. Bush has demanded a full Israeli withdrawal from Palestinian-ruled areas, an Arab condition for a conference on peacemaking steps that world powers want held this summer.

POWELL MEETS KING ABDALLAH & SAUD AL-FAISAL

Powell, speaking after separate meetings with Sharon, King Abdullah of Jordan and Saudi Foreign Minister Prince Saud al-Faisal, tried to strike a balance between Sharon's preference for interim measures and Arab calls for a complete agreement.

The proposed conference would be "another step on a way forward" rather than a decisive meeting to draft an overall settlement, he said.

Sharon's proposed plan reflected a previous proposal for a long-term interim arrangement envisaging Israeli security buffer zones in the West Bank and continued Jewish settlements.

Palestinians have rejected such ideas as obstacles to their goal of a viable independent state.

PHOTO CAPTION

Secretary of State Colin Powell met at the state Department with Saudi Foreign Minister, Saud Al-Faisal and King Abdallah of Jordan, Monday, May 6, 2002. Powell says he'll need help from Saudi Arabia and other Arab nations to get all sides back on the road to peace in the Middle East. (AP Photo/J. Scott Applewhite)