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The move will eventually lead to a reduction in the IDF's presence along the border, and a modification of deployment by the navy and Military Intelligence.

The IDF is working on the basic assumption that the withdrawal will be within the framework of a peace agreement and linked to the peace negotiations with Syria. The plan was approved Dec. 24 by Prime Minister Ehud Barak.

The IDF has demanded that the withdrawal to the Israeli border be accompanied by a cessation of all hostile activity against it from Hezbollah and others in Lebanon.

The final plan calls for the dismantling of all terrorist infrastructures and for another force to be present in the former security zone to keep the peace. The IDF envisions the Lebanese Army deploying in the areas it vacates, but it does not rule out other observer forces being there at the initial stages.

The IDF also wants to maintain the open fence policy, the source said, to allow residents in south Lebanon to continue crossing into Israel to work.

Settlements close to the border would reportedly receive a "protection package" including security fences, lighting, electric gates, and guard posts. Some will have new approach routes paved so they are not exposed to the border.

Barak announced Dec. 24 that a team headed by Maj.-Gen. Menahem Einan, a reserve officer, would start work immediately in preparation for prospective peace talks with Lebanon. Einan headed the peace negotiations with Lebanon in 1983.