The Arabic London based Al Saraq Al Aousat newspaper reported on Saturday that the Palestinian Authority headed by the Palestinian president Mahmoud Abbas threatened to take unilateral steps if the deadlock in negotiations with the Israelis continues.

According to the newspaper source, the Palestinian Authority may conduct one of three steps. One, stopping all negotiations with Israeli, two announcing a Palestinian State from one side, three, removing all Palestinian security forces from the West Bank and redeploy them only in Jericho city.

The Newspaper said that the Palestinian Authority will look to make a decision about what route to take by late September 2008.

Meanwhile the Palestinian president Mahmoud Abbas is leaving on Saturday night for Egypt where he is expected to hold talks with Hussni Mubarak, the President of Egypt, and other officials. Abbas is expected to discuss the  ongoing Palestinian internal talks and the latest updates on the negotiations with Israel.

The Palestinian Israeli talks were reinstated last November, US demonstration has pledged to reach a final peace deal between the two sides by the end of 2008.