CAIRO. Nov 10:. Israel has agreed to cut its troop presence outside Jewish settlements In Gaza, producing progress in five weeks of negotiations for Palestinian self-rule, sources close to the PLO-lsraeli talks said today, reports Reifter.

The breakthrough, which could clear the way for an Israeli withdrawal from the West Bank town of Jericho and the Gaza Strip by December 13. was achieved after two days of crisis talks between the PLO and Israel at a secret location In Cairo.

"Significant progress has been made in the meetings.’ I expect we will achieve the desired results in December but I still feel there are many obstacles to overcome." Nabil Shaath, head of the Palestinian negotiating team told Reuters.

Shaath said the sixth round of PLO-lsraeli talks would be

I held either on Monday or I. Tuesday of next week in the

Egyptian Red Sea resort of Taba.

Sources close to the meetings said the Israeli delegation, led by General Amnon Shahak. provided the Palestinians with amended maps for the withdrawal plan from Gaza which they said this time amounted to withdrawal rather than redeployment.

Under the modified Israeli security plan, Israel wpuld keep troops around Jewish settlements but would evacuate some roads and areas and hand them over to the PalesUnians in line with the peace accord signed in Washington on September 13. .

"In their previous meetings the Israelis have demanded to maintain control of half of the land to protect the settlements but this time there has been a significant change in their concept." one source said.

PLO negotiators walked out of the talks in Taba last week saying the withdrawal plan did not go far enough.