Olmert 'offers Golan Heights in Peace Deal'

The Israeli prime minister, Ehud Olmert, has passed a secret message to Syria offering to return the Golan Heights as part of a broad peace deal, a well-connected Israeli newspaper reported today.

There was no confirmation of the claim and Syrian diplomats were reported as saying their government had received no such overture. Meir Sheetrit, an Israeli cabinet minister, said that any future agreement with Syria would involve Israel handing over sovereignty of the Golan back to Damascus, but retaining the territory under a lease of at least 25 years.

In return, Israel wants Syria to end its support for Iran, Hizbullah and armed Palestinian groups. A number of Palestinian groups have leaders based in Damascus, including notably Khaled Meshal, head of the Hamas political bureau.

According to the Yedioth Ahronoth newspaper, Mr Olmert spoke by for an hour by telephone to George Bush on April 24 and told him he wanted to restart talks with the Syrians. Previously, the US administration has been opposed to such contact because of its criticisms of Syria's role in the Iraq insurgency and support for Hizbullah.

Mr Olmert then sent a secret message to the Syrians through German and Turkish officials, the newspaper said. "I would like to hear from you whether, in exchange for an Israeli withdrawal from the Golan Heights, Syria would be willing to fulfill its part: To gradually dissolve its alliances with Iran, Hizbullah and the Palestinian terror organizations, and to stop financing and encouraging terror," the paper quoted Mr Olmert as saying.

The report follows a series of high-profile articles in the Israeli press citing Israeli military and intelligence sources as saying Syria was building up its military on the border and may be preparing for an attack. Israel and Syria have negotiated in the past, but the last formal talks broke down in 2000. Although they remain enemies, the border has remained largely quiet for the past 30 years.

The renewed interest in Syria comes at a time when Mr Olmert is performing badly in public opinion polls and is searching for a new policy direction. He was elected last year on a promise to withdraw from some settlements in the occupied West Bank and to consolidate others. But after the Lebanon war last summer, that policy was frozen. Israeli government officials have said they see little chance of an imminent peace agreement with the Palestinians. Some analysts have suggested a diplomatic overture to the Syrians might restore Mr Olmert's standing.