"He can go to Gaza and other Palestinian places and even overseas," the source said. 

Israeli Defense Minister Binyamin Ben Eliezer also confirmed later Monday that Arafat's confinement was at an end. 

He said that Israel Defense Forces (IDF) troops will withdraw from Ramallah in the next few days, but Arafat is free to move around now. 

"Already today, Arafat can go where he chooses," said Ben Eliezer. 

However, according to a Palestinian source, Arafat's aides have advised the Palestinian leader to remain in his compound until the four convicted assassins of Israeli former Tourism Minister Rehavam Ze'evi have been transferred to a prison in the West Bank town of Jericho. 

On Sunday, both Israel and Palestinians accepted a fresh U.S. proposal to end the siege on Arafat, under which American and British soldiers will guard the Palestinian jail where the four convicted Palestinians will serve their sentences. 

However, according to an Israeli official source, Israel has not given up its demand for the extradition of the four. 

May 3, 2002
Palestinian leader Yasser Arafat has been given a hero's welcome on a tour of Ramallah after being allowed to leave his besieged compound. 

A renowned survivor, Arafat was enjoying his freedom, attracting large crowds as he prayed at the graves of Palestinians killed whilst he was confined. He then visited a hospital to comfort countrymen injured during the conflict. 

Arafat said he was looking to the future, with an enduring peace his ultimate aim. 

“We want to achieve the whole stability for the Middle East,” he said. 

However a ceasefire between the Palestinians and Israel is yet to be brokered, with the Palestinian side deeply resentful of the destruction left behind by Israel's tanks. The people of Ramallah say the damage done to their town had nothing to do with fighting terror. 

Meanwhile, a group of international activists has gained entry to Bethlehem's Church of the Nativity. 

Nine people are believed to have entered the holy site carrying food supplies and while another 21 were arrested by Israeli troops.