JERUSALEM, July 20: Israel announced on Saturday that it would release some Palestinian prisoners as a `gesture`, after the two sides agreed to lay the groundwork to resume peace negotiations frozen for three years.

Some of those to be released had been held in prisons for decades, Israeli Intelligence Minister Yuval Steinitz said.

His announcement came hours after US Secretary of State John Kerry said Israeli and Palestinian negotiators had agreed to meet to pave the way for a resumption of direct peace talks.

The last round of direct talks broke down in 2010 over the issue of Israeli settlements in the West Bank and east Jerusalem.

Mr Steinitz said his government would engage in the staggered release of a `limit-ed number` of prisoners, some of whom he defined as `heavyweights`, who have been in jail for up to 30 years.

`There will definitely be a certain gesture here,` he said without indicating how many prisoners were to be freed.

According to Israeli rights group B`Tselem, at least 4,713 Palestinians are imprisoned in the Jewish state.

Their release is one of the Palestinians` key demands for resuming peace talks, particularly the 107 prisoners arrested prior to 1993, when the Oslo peace accords were signed.

An Israeli official said no prisoners would be released before direct talks began and the process would then be dependent on the Palestinians proving they were `really serious and not playing games`.

`It won`t happen tomorrow and not next week,` the offi-cial said on condition of anonymity.

According to a Palestinian official: `The ball is now in Israel`s court. Kerry has proposed the bases for a resumption of negotiations and asked (Israeli Prime Minister Benjamin) Netanyahu to respond favourably to one of them.

`The bases are the release of Palestinians jailed before the Oslo accords, minors, the sick or the elderly,` he said on condition of anonymity. `And that Israel recognise the 1967 (border) lines as a reference point, or a halt to settlement building.

The official said Mr Netanyahu had agreed to hold a special cabinet session to draw up Israel`s response to Mr Kerry`s proposals.

`If Israel accepts them, negotiations will résumé.

-AFP