A deal has been reached to lift the siege by the Israeli army of the Nativity Church in Bethlehem, the governor of Bethlehem told AFP early on Tuesday.

The governor, Mohammed al-Madani, said the US-EU-brokered agreement stipulates the extradition of 13 Palestinians, most wanted by Israel, to Italy and 26 to a Gaza prison. The rest of those inside the church will be set free, he said.

He said high-ranking Palestinian security officials had entered the church, to announce the deal and gather the prisoners for an imminent release.

An end to the 36-day siege at the church, the birthplace of Jesus Christ, resolves the last major confrontation remaining from the Israeli military blitz against Palestinian militants and is seen helping smooth the way for a new round of Middle East diplomacy.

A deal is also expected to facilitate the visit of Israeli Prime Minister Ariel Sharon to Washington, where he was due to meet Tuesday with President George W. Bush.

The US president has urged him to wind up his West Bank offensive to break militant networks.