Hamas has rejected demands by the Quartet that it recognize Israel, renounce violence and recognize existing peace agreements, and Haniyeh did not explain how he would get around those disagreements. “The government is ready for dialogue with the Quartet, and looking for every possible way to end the conflict and the occupation,” he said.

Parliament was to approve the new Hamas government today or tomorrow.

On the eve of the Israeli election, police tightened security, fearing Palestinian militants would launch an attack in an attempt to influence the outcome of the vote, as has happened in the past. Traffic at West Bank checkpoints backed up, with soldiers conducting thorough checks on Palestinians.

Police also closed a hotly disputed holy site in the Old City of Jerusalem to visitors. The Al Aqsa Mosque compound, built on the ruins of the biblical Jewish temples, is a magnet for extremists. Jerusalem police spokesman Shmuel Ben-Ruby said Muslim worshippers would be allowed into the site, which is administered by Muslim authorities.

In Gaza, Israeli aircraft fired missiles yesterday at a group of Palestinians preparing to launch homemade rockets at Israel, killing an Islamic Jihad militant, Palestinian security officials and the Israeli army said. Earlier yesterday, the air force fired missiles at a group of militants, wounding two people, Palestinian security officials and the army said.

The Israeli air force frequently launches air strikes in Gaza, aiming for top militants and cells responsible for almost daily rocket fire on Israel.

<B>Kadima shook up politics</B>

Yesterday’s polls, the last before the vote, predicted Labor would be the second largest party in Israel’s parliament. The hawkish Likud would come in third, racking up between 13-15 seats, a serious blow to a party that dominated Israeli politics for most of the past three decades.

A Dahaf Institute poll published in the Israeli daily Yediot Ahronot showed Kadima had lost two seats, dropping to 34, Labor remained steady at 21 and Likud had dropped one to 13.

A Smith Institute poll published in the English-language daily, The Jerusalem Post, had Kadima pulling in between 33-34 seats, Labor between 20-21 seats and Likud steady at 15. The poll had an error margin of 4.5 percentage points.

The hawkish Israel Beitenu, an immigrants’ party headed by Avigdor Lieberman, an emigre from the former Soviet Union, is expected to make a strong showing. Polls predict Lieberman will win 12 seats, up from two he holds now.

“He’s (Lieberman) not corrupt and he’ll do a lot of things that Likud couldn’t do and Olmert won’t do,” said Shimon Tubul, a fruit seller at Jerusalem’s outdoor market.Pollsters said turnout could be lower than in previous elections.

The establishment of Kadima in November shook up Israeli politics. For the first time, a centrist party has a chance of upending the two largest movements, Labor and Likud. When Sharon established the party, it was polling more than 40 seats, but since his stroke, Kadima’s strength has diminished slightly.

Under Israel’s electoral system, the leader of the largest party is given first stab at forming a coalition that controls a majority of the 120 parliament seats. Olmert could invite both moderate and religious parties into his government.

Analysts say Olmert could only be denied the premiership if hardline and religious parties win a so-called “blocking majority” of 60 seats, and agree to form a coalition.

No party has ever won an outright majority in Israel’s 58-year history.