Israeli Prime Minister Ariel Sharon favors a rail link between the Gaza Strip and the West Bank due to security reasons, local newspaper Ha'aretz reported Friday.

However, the World Bank supports building a transit passage in the form of a sunken road between Gaza and the West Bank.

The United States will finance a study examining options for linking the two separate Palestinian territory.

The study was initiated by the World Bank, which asked for US sponsorship to moderate Israel's anticipated objection to its conclusions.

Israel approved the study initiative at a meeting last week between Nigel Roberts, World Bank director for the West Bank and Gaza, and Baruch Spiegel, adviser to Israeli Defense Minister Shaul Mofaz.

The US administration conditioned the project funding on the agreement of both parties.

Source: Xinhua