Israel has formally turned over the West Bank city of Jericho to Palestinian forces.

Israeli troops took down their national flag and dismantled a key checkpoint as Palestinian forces took up positions inside the city. Top commanders from both sides resolved a last-minute hitch over paperwork and signed an agreement to formalize the transfer.

Israel still controls two checkpoints outside Jericho, but troops have relaxed security procedures to ease travel to the city.

Jericho is the first of five towns (with Tulkarem, Qalqiliya, Ramallah, Bethlehem) that Israel plans to turn over to Palestinian control.

Meanwhile, Israeli television reported that Jewish extremists plan to take over a disputed holy site in Jerusalem to try to sabotage Israel's planned withdrawal from Gaza.

Also Wednesday in Cairo, Egyptian and Palestinian officials and Palestinian militant leaders are discussing a proposed one-year halt to Palestinian attacks on Israeli targets.