JERUSALEM, Nov. 23 (Xinhuanet) -- Israeli Knesset (parliament) Speaker Reuven Rivlin announced Tuesday evening that the early general elections would be held on March 28, 2006, while Palestinian officials expressed hope for new peace momentum following Israel's political realignment.

    Legal wrangling ensued after Israeli Prime Minister Ariel Sharon asked President Moshe Katsav on Monday to issue an executive order to dissolve the parliament. Dissolving the Knesset by such an order would allow Sharon to appoint ministers without parliamentary approval until elections.

    Knesset factions opposed such a move, demanding that Katsav allow them to pass legislation on dissolving the parliament, which would necessitate Knesset approval for the prime minister's ministerial appointments.

    Under a compromise deal reached between Katsav and Attorney General Menachem Mazuz, elections will be held on March 28, and the Knesset Constitution, Law and Justice Committee will continue deliberating legislation on dissolving the Knesset and holding early elections.

    But Sharon will be able to issue a decree on dissolving the parliament with Katsav's consent until Dec. 8.

    If he does issue such a decree in time, legislation on dissolving the parliament will be halted and the prime minister will be able to appoint ministers without the approval of the parliament.

    Earlier, local television Channel 1 reported that Israel's center-right Likud party is set to hold an election to choose a new leader on Dec. 19.

    Seven candidates, including Foreign Minister Silvan Shalom and Defense Minister Shaul Mofaz, will run in the election to replace Sharon as the Likud chairman.

    In case none of the candidates receive the minimum of 40 percent of votes to win the election, a run-off will be held on Dec. 22, according to the report.

    Sharon, who co-founded Likud three decades ago, officially quit the party on Monday and announced his intention to set up a new centrist party.

    Likud central committee chairman Tzahi Hanegbi will head the party temporarily till a new leader is elected.

    Surveys by two largest Israeli newspapers showed a badly damaged Likud following the departure of Sharon and 14 other Likud Knesset members would join Sharon's new party.

    The poll by Yediot Aharonot newspaper predicted that Sharon's party would garner 33 Knesset seats in the general elections, Labor would walk away with 26 seats and Likud would be left with only 12 seats, while Ma'ariv's survey showed that Sharon's party would win 30 seats, Labor, 26 and Likud, 15.

    Also on Tuesday, Sharon's top allies started their election campaign, saying the prime minister's new centrist party would push for a final agreement with the Palestinians and the creation of a Palestinian state alongside Israel.

    Finance Minister Ehud Olmert, a top Sharon ally, said the prime minister wants to draw Israel's final borders in talks with the Palestinians.

    "All his life he has been fighting for secure borders to ensure security and peace," Olmert told Army Radio after meeting with his Palestinian counterpart, Salam Fayyad.

    In the West Bank town of Jericho, Palestinian Prime Minister Ahmed Qurie said that while political change in Israel is an internal affair, he hoped for "an Israeli government interested inpursuing a peace process within a limited time frame."

    The majority of Israelis, Qurie said, want peace.

    Meanwhile, Nabil Abu Rudeineh, spokesman for the Palestinian National Authority (PNA), said the PNA hoped that Israel, headed by a new government, will really seek peace.

    Chief Palestinian negotiator Saeb Erekat also said the Palestinians hoped to have a partner in Israel that desires to endthe decades-long Israeli-Palestinian conflict.

    He described what is going on in Israel as "an eruption of a political volcano of such significance that I've never seen before."

    Palestinian Information Minister Nabil Shaath said he is optimistic about the peace process, adding that there is an opportunity for reviving long-stalled negotiations. Enditem