By Jon Leyne BBC State Department correspondent in Whistler, Canada

A new row has broken out over the United States' Middle East policy after Secretary of State Colin Powell suggested the possible creation of a provisional Palestinian state.

The US will continue to work with Arafat, said Powell

Mr Powell made his remarks in an interview with the Arabic newspaper al-Hayat, during which he also made it clear the United States would continue working with Yasser Arafat.

But the White House spokesman Ari Fleischer, pointedly failed to endorse Mr Powell's suggestions.

The secretary of state's comments appear to have thrown even more confusion into the Bush administration's already less than clear policy towards the Middle East.

Mr Powell is now in Whistler in Canada for a meeting of G8 foreign ministers.

Interim step

Colin Powell said that as part of efforts to create a Palestinian state, it might be necessary to have a provisional state as an interim step.

He said that would enable the Palestinian people to see progress in the very near future.

Indeed, Mr Powell spoke of the Palestinian Authority as a government, and he made clear in the most explicit way that the United States would continue to work with Yasser Arafat, despite pressure from the Israelis to cut him off.

The White House spokesman Ari Fleischer later pointedly failed to endorse Mr Powell's comments, saying only that the president was listening to a variety of different pieces of advice from many different sources.

President George W Bush has promised to explain his Middle East policy, possibly as early as next week.

But this is further evidence that within the administration, a lively debate is still going on.