Government spokesman Mark Regev says the release is meant to strengthen peace talks with the government of Palestinian President Mahmoud Abbas.

Israel has been holding peace talks with Abbas for the past year, while shunning the rival Hamas militant group's government in the Gaza Strip. All prisoners set to be freed are members of Abbas' Fatah party.

Israel holds more than 9,000 Palestinian prisoners.

Prime Minister Ehud Olmert announced the planned release earlier this month. On Sunday, his Cabinet formally approved the move.

A date for the release wasn't given. But it's expected to take place before the Muslim holiday of Eid al-Adha on Dec 8. -- AP