We were never against the idea that the CIA bring other monitors to help their work

Israeli Foreign Minister Shimon Peres

The unrest claimed two more lives on Monday.

Israeli forces intercepted and killed a man who an Israeli official said was a suicide bomber carrying a bomb.

Earlier, a 15-year-old Palestinian was shot by Israeli troops in the town of Rafah in the Gaza Strip.

There had been clashes in the area earlier in the day, but residents said the area was quiet at the time of the shooting.

Mr Peres gave details on Israeli public television of his acceptance in principle of US monitors.

"We were never against the idea that the CIA bring other monitors to help their work, but we are against an international force," he told Israel public television on Monday.

Sharon: International force is unacceptable

"If it is a question of American monitors, we don't have a problem," he added.

An unknown number of CIA agents already operates in Israel and the Palestinian territories, mainly monitoring on-off security co-operation between the two sides.

Ultimately, Israel's acceptance of a foreign delegation might hinge on its definition.

The BBC's Frank Gardner says that the distinction between monitors, observers and peace-keepers is hugely important to Israelis.

He says the concept of a large international observer force being deployed to keep peace between Israel and the Palestinians is anathema to most Israelis.

Diya Tmaizi is the youngest victim of fighting which erupted last September

They believe it would only restrain their security forces, while being incapable of checking potential bomb factories belonging to Palestinian militants.

Palestinians have long been calling on the United Nations Security Council to send a 2,000-strong force of UN military peacekeepers to protect Palestinian civilians.

The proposal for an unarmed military observer force, rather than a UN peacekeeping force, has been raised separately by Russia, France and the United Kingdom, and by foreign ministers at the G8 summit.

Any observer force would be expected to monitor violence, the observance of the ceasefire and liaise between Israeli security forces and the Palestinian police.

Suspects sought

Israeli police, meanwhile, have called two Jewish extremists in for questioning about an attack last week in which three Palestinians, including a three-month-old baby boy, were shot dead as they travelled in their car near the West Bank town of Hebron.

Security forces suspect the men are part of a group believed to be responsible for three other attacks on Palestinians as well.

The pair - Noam Federman and Itamar Ben-Gvir - have said they will not surrender.

"They called me in and I'm not going," Mr Federman said.

Israel remains on a high state of alert after Palestinian militants vowed to take revenge for the killings.