The Palestinian people are determined to declare an independent state and there is solid international support

Yasser Arafat

"The proclamation of the Palestinian state is irreversible," Mr Arafat said, according Nabil Amr, a cabinet minister in the self-rule Palestinian authority.

There are fears that such a declaration might spark violence as Israel says it would respond by annexing parts of the occupied Palestinian territories.

"The Israelis might impose a seizure of Palestinian areas, might starve them," Mr Arafat is reported to have told the closed meeting.

Gaza demonstrations remind Arafat of his obligations to his people

"They may take measures that would lead to confrontation, so all the options are open," he reportedly added.

But he insisted that the Palestinian people enjoyed the solid support at an international level which would facilitate recognition of their state.

Slow progress

Israel and the Palestinians have fallen behind the schedule for meeting a 13 September deadline for a final peace deal between the two sides.

Israeli Prime Minister Ehud Barak repeated his call on Sunday for a US-hosted summit to try to move the peace process forward,

Last week, American mediation efforts failed to bring agreement on a summit, which Washington believes is vital to bridging the gaps between the two sides.

Yasser Arafat said the lack of progress on substantive issues did not merit convening a summit.

The Palestinians insist that more occupied land must be returned and more prisoners released before moving on to other matters in the peace process.