Sources in Prime Minister Ariel Sharon's entourage to Washington said Wednesday that U.S. President George Bush has agreed that peace talks between Israel and the Palestinians must wait until internal reforms within the PA have brought about a governing body that "would be headed by a different person or different people" than the current leader, Palestinian Authority Chairman Yasser Arafat.

"It was clear that the chief [Arafat] must be moved to a different role within the PA, customarily to a symbolic position and the administrative responsibilities would be transferred to others," the sources said.

Sharon, who will convene his cabinet Wednesday night to dicuss a response to Tuesday night's suicide bombing in Rishon Letzion that killed 15 people, will not present a proposal to expel Arafat.

Instead, he is expected to adopt the American plan calling for structural changes that would lead to Arafat's removal from power. According to the sources, Bush and his advisors have proposed the establishment of a temporary government within the PA until a constitution is drawn up and elections are held.

The sources said that Bush also agreed that Israel would not hold talks with the PA until it has completed its internal reforms. The president did demand, however, that once the reforms have been carried out, the two sides must hold talks that would eventually lead to a final settlement.

American officials estimate that moderate Arab nations will support the U.S. proposal, but that Israel would have to sit on the sidelines and not get involved in order for the proposal to fully succeed.

The Americans understand that without these structural changes "there is no one to talk to within the PA and it is a waste of effort," the sources said.

Sharon broke off his U.S. visit and headed home Wednesday, after receiving word of the attack during his meeting Tuesday with Bush.