BETHLEHEM, West Bank - More than 100 people remain holed up in Bethlehem's Church of the Nativity where a monthlong standoff has heightened tensions in the Middle East. 

Palestinian gunmen entered the church in early April when Israeli troops and tanks rolled into Bethlehem, part of Israel's incursion in the West Bank against Palestinian militias behind terror attacks. 

CNN Correspondent Walter Rodgers spoke Monday morning to CNN anchor Paula Zahn about the progress in negotiations between the Israelis and Palestinians. 

RODGERS: The 123 people still inside the Church of the Nativity, the traditional site of Jesus' birth, are still inside that church at this hour despite some rather premature news reports [Sunday] night that an agreement had been reached to end the siege. And now the people inside the church, 123, say they hope, they pray, they expect it will end [Monday], but an Israeli source with whom I spoke said, essentially, "Don't hold your breath." 

Now, again, the devil is in the details. Yasser Arafat has yet to sign off on the outlines of an agreement. So in point of fact, that's what we have at this point -- only the outline of an agreement, not the agreement itself, which is why one of the Israelis remains somewhat pessimistic. The Israelis [are] telling us that it could not -- it might go as long as [Tuesday] or perhaps even longer. 

Again, the problem seems to be the number of Palestinians inside the church who will be deported to Italy. The Israelis say they want 13, minimum. These are people whom the Israelis call the highest profile, senior terrorists. Those are Israeli words. 

On the other hand, the Palestinians say no more than six. Yasser Arafat is said to be adamant about that six -- Arafat saying no more than six. 

Thus, we have a major sticking point. There are going to have to be more negotiations. Many of the people inside that church, by the way, still don't know whether they are the ones going to be exiled to Italy, or whether they are going to go to Gaza, where they may face a trial in a Palestinian court of justice. 

One thing yet to be resolved, of course: The Palestinians still have guns inside that church. They say they will not give up those guns until they hear from Yasser Arafat. 

What's really interesting here is that the Church of the Nativity, the traditional site of Jesus' birth, is turning into the site of a duel again between Yasser Arafat and Israel's prime minister, Ariel Sharon, in Washington. Both men could conceivably stretch out this crisis for their own purposes. Arafat could stretch it out to embarrass Prime Minister Sharon, who is meeting with President Bush at the White House. 

On the other hand, Mr. Sharon might try to stretch it out because he could then [use the] White House as a platform and say, "Look, the terrorists who I have referred to are still holding the Church of the Nativity, the holiest site and one of the holiest sites in Christendom." 

ZAHN: So once again, Walt, the major sticking point at this point is the future of what he referred to these 13 gunmen ... or the six, that Arafat says that he will only allow to be exiled? 

RODGERS: That seems to be the case, but again we still don't know all the details of the outline of a projected agreement but still no agreement. One of the things in the outline is we have to determine if, in fact, the 30 or so other Palestinians whom the Israelis want, and when they go to Gaza, will they stand trial down there? 

Now, there are a lot of loose ends out there. And there is still a lot of politics, which could be played again. [Sunday night], there was optimism this would end [Monday]. The Israelis are now saying maybe [Monday], maybe [Tuesday], and there is the possibility it could go even beyond that if it suits one side or the other's political purposes.