Thousands continue to strike

The strike will now take place on Wednesday.

Finance minister Benjamin Netanyahu plans to slash about 3bn shekels (�416m; $647m) from government spending, which means public sector job, wages and pensions cuts.

"I am postponing the strike for a day, and I call on the finance minister to conduct negotiations with me tomorrow (Wednesday)," Histadrut chairman Amir Peretz told Israeli television.

A strike by about 150,000 civil servants will continue.

A full stoppage by Histadrut's 750,000 workers would shut down most public services.

Mr Netanyahu welcomed the delay and further talks, but has said he would use legislation to push through the cuts if they failed.

Economic cost

He is trying reduce the 2003 budget deficit by 11bn shekels.

Israel's economy has entered its third year of recession, due to the Palestinian uprising against the occupation of their territory and the global economic slowdown.

Defence costs have soared and tax revenues fallen dramatically.

Estimates put the cost of a general strike at 250m shekels a day.

Israel's cabinet has given its consent to the plans to reduce the budget deficit. It faces the first of three votes on 13 April.