Tony Blair believes he has secured agreement for a London conference next year to discuss Palestinian reform, and a commitment from both sides in the conflict to eventual negotiations on a final peace settlement.

During a brief visit to the region on Tuesday, the prime minister met his Israeli counterpart, Ariel Sharon in Jerusalem, before travelling to Ramallah to meet Mahmoud Abbas, the new Palestinian leader, at Yasser Arafat's former headquarters.

Condoleezza Rice, the US national security adviser, who is to take over from Colin Powell as secretary of state, will attend the London conference.

The UN, the EU, and Russia will also attend, as well as foreign ministers from France, Germany, Italy, Canada, Japan, Saudi Arabia, Egypt, Jordan, Tunisia and Norway.

At an earlier press conference, Sharon confirmed that Israel will not send a representative but added that Arafat's death had created "a window of opportunity and I am not going to miss it".

However, he then went on to say there would have to be "a full cessation of terrorism, not promises, not declarations" and, in spite of new Palestinian leadership in place, there was "not the slightest sign" of that yet.

Blair said: "I believe that if terrorism would come to an end, the door will be open for the road map, which will change the life of the Israelis, Palestinians and the situation in the region.

"I am not interested in having a conference just to make a point. I do not want to have a meeting so I can say I have held a meeting on the Middle East.

"I am having the meeting because there is one missing piece where the international community can play a part."