Israeli Prime Minister Ehud Olmert told visiting British Prime Minister Tony Blair here on Saturday that he intended to meet with Palestinian president Mahmud Abbas, Britain's Sky News television reported.

Olmert told a joint news conference with Blair in Jerusalem that "I intend to meet with chairman Abbas in order to make progress on outstanding issues on our agenda."

The joint news conference was held after Olmert met with Blair. But Olmert did not make it clear when he would meet with Abbas.

Olmert told reporters that a meeting with Abbas was not conditional on the release of Gilad Shalit, an Israeli soldier being held captive by militants with links to the ruling Hamas party.

However, Olmert noted that no progress would be made in the peace process until the soldier is released, indicating talks with Abbas could help gain Shalit's freedom.

"I assured Prime Minister Blair that I am ready to work closely with ... Mahmoud Abbas," Olmert said at the news conference with his British counterpart, adding that "I also told Prime Minister Blair that I intend to meet with him (Abbas)".

Corporal Shalit was captured in a cross-border raid on June 25, for which three militant groups including Hamas' armed wing claimed responsibility.

The Palestinian militants want Israel to free Palestinian prisoners in exchange for Shalit's release, something refused by the Israeli side in the past.

Earlier in the day, sources in Palestinian President Abbas's office said Abbas was also to meet Blair in the West Bank city of Ramallah on Sunday.

The sources said that Abbas and Blair would discuss the current situation in the Palestinian territories, including the resumption of peace negotiations with Israel and the captive Israeli soldier in Gaza.

Source: Xinhua