Palestinian sources reported that the Palestinian Prime Minister Ahmad Qurei threartened to resign his post after a disagreement with the Palestinian President Yasser Arafat on Wednesday night.

During a cabinet meeting a quarell over whether to send a delegation to a donors meeting in New York erupted.

Qurei asked Nasser Al-Kidqeh the head of the Palestinian mission in the USA to ask for a delay of the Donors meeting, in which the donor ocuntries will discuss the Israeli withdrawal from the Gaza Strip and also building more by pass roads.

Arafat accused Qurei of passing his authority limits and acting without consulting with him.

Following the meeting, Qurei conveyed his threat to Arafat’s bureau, however he stopped short of handing in an official resignation letter, despite earlier reports that Qurei has already resigned.

Qurei has resigned in June when riots erupted in the Gaza Strip and the West Bank over corruption issues. Qurei demanded more authority to carry out reform required from the PA.

Arafat rehjected Qurei’s resignation and reiterated his confidence in his PM, which had Qurei to rescind his resgination and to resume his job as a Prime Minister.

So far, there has been confirmation whther Qurei resigned or not.