The Israeli security cabinet on Thursday evening decided to forcibly expel Palestinian leader Yasser Arafat.
"The events of these last few days have proved again that Yasser Arafat is an obstacle to all attempts at reconciliation between the Israelis and the Palestinians."
"Israel will act to remove this obstacle in a manner and at a time which will be decided afterwards," a government statement said.
The security cabinet, which was chaired by Prime Minister Ariel Sharon, was convened in view of the two suicide bomb attacks on Tuesday, which left 15 dead. Sharon was in India at the time of the attacks.
Israel has accused Arafat of trying to sabotage the peace process but both the US and the European Union have warned Israel against trying to expel the 74-year-old Palestinian leader.