The prime minister has called for renewed progress in the search for peace in the Middle East.

Tony Blair told reporters that he remained "totally committed" to pushing the stalled peace process forward.

"I do believe it is possible to push this process forward," he said.

Speaking at his Downing Street press conference, Blair also claimed that the Arab world would "rejoice" if Saddam Hussein was removed from power.

"When people talk about the problems between the Arab and the Western worlds...I don't think those problems are to do with the removal of Saddam. I think most of the Arab world would rejoice at that," he said.

"I think they are to do with what I have described as a shadow hanging over relations between the Arab and the Muslim world and the West, which is the issue of the Middle East peace process."

Blair said that the conflict between Israel and the Palestinians had formed a "very large part" of recent discussions with President Bush.

"We've got a basis on which we can move it forward - which is the two state solution - and we should do that as soon as we possibly can."

His comments came amid indications that the momentum towards a peace deal may be picking up pace following Israel's general election.

Palestinian and international representatives are currently meeting in London in a bid to agree on reforms to the structure of the Palestinian Authority.

Yasser Arafat has also announced his intention to appoint a prime minister, a move seen as an important step in re-establishing dialogue with the Israeli government.

The move was welcomed by foreign secretary Jack Straw.

"This decision is an important part of the Palestinian reform process as outlined in the roadmap being discussed by the quartet [of the EU, US, USA and Russia]," he said.

"We continue to attach great importance to supporting Palestinian reform efforts, for the sake of the Palestinians themselves and as an important part of the search for comprehensive peace in the region.

"The meetings to be held in London this week are another step in this direction."