Israeli Prime Minister Ariel Sharon was quoted Wednesday as saying that Israel would be ready to reconsider destroying settlers’ homes if the pullout is coordinated with the Palestinian Authority.

‘The homes of settlers in Gush Katif will not be destroyed after the evacuation if the disengagement plan will be carried out in coordination with the Palestinians,’ Army Radio quoted Sharon as saying.

Israeli sources said Wednesday that Sharon proposed to the proposed new head of the World bank Pull Woliwitz that the bank buy settlers’ homes in Gaza.  

Under current plans, only synagogues and cemeteries would be moved into Israel while all settlers’ homes will be demolished. Israel offered to negotiate the future of existing infra-structure and public facilities with the PA through an international third party.  

Israel fears that scenes of Palestinians taking over settlers’ homes after the evacuation would be an “intolerably” humiliating.

Palestinians are not keen to keep settlers’ homes intact. PA officials have repeatedly said that the structures are not useful for the overcrowded Palestinian Strip.

Israel is also worried of the image created by the intended massive destruction, and as worried about the cost of the operation, which is expected to arrive at NIS 150 million.