Palestinian militants planned to assassinate Israel President Ehud Olmert as he travelled to the West Bank to meet with Palestinian President Mahmoud Abbas in August, Israeli officials said Sunday.

Israeli security sources allege the gunmen, believed to be linked to Abbas' Fatah movement, planned to fire on Olmert's convoy on Aug. 6. while he was briefly in the West Bank town of Jericho.

Israeli authorities believe plot leaders were familiar with security arrangements for the day.

After years of bloodshed, the West Bank meeting was the first on Palestinian soil in seven years between Israeli and Palestinian leaders.

Palestinian Prime Minister Salam Fayyad, who was in Jerusalem on Sunday, said Olmert was never seriously in danger and that Palestinian authorities are conducting a proper investigation.

Fayyad said Palestinian authorities arrested three men based on Israeli intelligence reports, but they were later released due to a lack of evidence.

A Palestinian security chief said two other men are currently in custody and are being questioned in connection to the plot.

Israelis and Palestinians alike are questioning why Olmert was allowed to proceed with the trip and why such a serious plot would be left in the hands of Palestinian security when Israel's army operates freely in the West Bank.

Israeli Army Radio quoted Olmert Sunday as saying: "Israel won't look the other way, but we won't halt the dialogue."

Despite his efforts to bolster peace, Abbas is being criticized for not controlling pro-Fatah militants roaming the West Bank.

"We are trying the very best we can to bring law and order to the cities, villages and areas that are under our control," Fayyad said on Sunday.

Plot could hinder peace talks

The plot also threatens to hinder the outline of a joint statement in time for the U.S.-sponsored Mideast conference at the end of November.

Olmert is under mounting pressure from Palestinians to concede on a number of key issues ahead of the conference in Annapolis, Maryland. However, two right-wing members of Israel's governing coalition have threatened to resign if he goes too far with concessions.

On Sunday, Olmert told reporters ahead of a meeting with his cabinet that the conference "is not meant to be an event on its own or an event for an agreement or a historic breakthrough."

Olmert said the meeting should be viewed as a chance to bolster international support for statehood negotiations that are expected to begin after the conference.

Key issues such as final borders, sovereignty over disputed Jerusalem and a solution for Palestinians who were left homeless after the war that followed Israel's 1948 creation are expected to be on the table.

Israelis and Palestinians have yet to agree on how detailed the initial framework of an eventual peace deal should be. Both sides confirm no agreements have been written on any of the key issues.

The Palestinians want a detailed preliminary statement with a firm timetable for the creation of a Palestinian state while Israel would prefer to see a vaguely worded agreement with room for future maneuvering.