Israeli Prime Minister Benjamin Netanyahu said on Sunday that Israel will ease the restrictions on the Palestinians in the West Bank cities.

Netanyahu made the remarks during the weekly cabinet meeting in Jerusalem, ahead of his scheduled meeting with Egyptian President Hosni Mubarak and with Jordanian King Abdullah II this week.

"I think we need to make a big effort, within the given security constraints, to make things easier for the Palestinians," Netanyahu told the cabinet members.

Netanyahu also said that economic growth and financial relief for the West Bank Palestinians are in no way a substitute for diplomatic efforts.

"If both sides can show willingness, we can progress forward faster than one might think," he said. "We mean business. But, if there is no cooperation we will continue to busy ourselves with solving problems."

The prime minister will meet with Mubarak on Monday at Sharm el-Sheikh in Egypt, and will hold a possible meeting with King Abdullah on Wednesday or on Friday morning, in an effort to emphasize the Iranian nuclear threat to the Middle East, according to local daily Ha'aretz.

Israel would like to see Egypt, Jordan and Saudi Arabia play a greater role in the peace process, as well as in pushing back against Iranian efforts to make further inroads in the region.

A planned meeting between Netanyahu and US President Barack Obama in Washington next week will also focus on the Iran's nuclear issue.