ISRAELI leaders are refusing to commit to December next year as a deadline for squaring off peace with the Palestinians, claiming the time frame agreed to in the Annapolis summit was a guideline only.

Prime Minister Ehud Olmert and Foreign Minister Tzipi Livni both raised Annapolis during lengthy addresses at a cabinet meeting yesterday. The meeting was the first since the pair returned from Washington with a commitment from US President George W. Bush to drive difficult negotiations towards a resolution late next year.

Deal-making within Mr Olmert's coalition Government is looming as just as fraught a process as finalising a peace agreement with the Palestinian Authority. The right-wing political bloc in Israel yesterday continued its hardline opposition to many of the principles tabled in Annapolis.

Ms Livni reiterated that all bets will be off unless Palestinian President Mahmoud Abbas's regime can fulfil security obligations under the peace road map.

"An effort will be made to hold accelerated negotiations in the hope that it will be possible to conclude them in 2008," Mr Olmert said.

"However, there is no commitment to a specific timetable regarding these negotiations. Israel will not have to carry outany commitment stemming from the agreement before all ofthe road-map commitments are met."

Continuing his post-summit criticism, hard-right leader Avigdor Lieberman said: "Abu Mazen (Mr Abbas) represents the Palestinians like I represent the Norwegians. His chances of controlling Gaza - as is demanded at Annapolis - are very weak."

Finalising a deal by the end of next year is considered important to the Bush regime, which leaves office in January 2009. Mr Bush has empowered Secretary of State Condoleezza Rice to drive negotiations until then in the hope of finally ending the 69-year-old conflict and leaving a lasting legacy in the region.

As part of an attempt to bolster Mr Abbas, Israel yesterday released 429 prisoners, most of them only several months ahead of scheduled release dates. Israel claims to be holding about 9000 West Bank or Gaza prisoners in its jails, while the Palestinian Authority claims the number is closer to 11,000.

"The release (of Palestinian prisoners) tomorrow is a joke," jailed Fatah leader Marwan Barghouti said.

"The majority of the prisoners would have been released anyway in the next few months. It is possible to release thousands of prisoners and not just 400.

"Abu Mazen asked for more, but they wouldn't let him have any more."

At the same time, Israel's security cabinet prepared to implement the first phase of power cuts to the Gaza Strip - a punitive measure in reaction to incessant rocket and mortar fire by militants.

Power and fuel cuts have been debated by Israel's defence establishment and judiciary for the past three months after the plan to scale back supplies from Israel, on which Gaza is totally dependant, were first raised by Defence Minister Ehud Barak.