But Deputy Defense Minister Ephraim Sneh, who developed the plan, convinced Peretz to allow him to present it to Olmert Monday. The IDF will be given two weeks to respond.
In addition, Peretz approved steps that will make it easier to bring Palestinian workers and merchants into Israel.
Olmert promised Abbas that he would "personally supervise" the removal of checkpoints, in order to give Palestinians greater freedom of movement. But GOC Central Command Yair Naveh warned Peretz Sunday that removing roadblocks could be a risky step.
"You are asking me to remove a roadblock, and that damages my ability to thwart a terror attack," said Naveh. "The roadblocks assist in thwarting and preventing the movement of wanted men in the West Bank."
Naveh suggested that instead of dismantling the checkpoints, Israel should decrease the scope of security checks at these checkpoints by examining only some vehicles rather than all of them.
Another suggestion was to open an additional crossing for goods in the northern Jordan Valley, to make it easier for trucks to get to Palestinian towns in the northern West Bank.
Peretz's bureau said that the plan to remove checkpoints has not been completely taken off the table, and it will be synthesized with other plans.
Meanwhile, Olmert is considering freeing Palestinian prisoners as a special gesture ahead of the Muslim festival of Id al-Adha, which will take place next week. Abbas requested such a gesture in his meeting with Olmert, to which the prime minister responded: "You're my guest, and I don't want to tell you no. I promise to look into it."
Channel 2 television reported that Olmert spoke about releasing 20 to 30 prisoners and asked Abbas if such a gesture would help him, or whether it would be better to wait until abducted Israel Defense Forces soldier Gilad Shalit is returned, after which Israel would release a far greater number of Palestinian prisoners.
Olmert raised the issue at the cabinet meeting Sunday as a trial balloon, to find out how ministers would react to a prisoner release ahead of the holiday. Ministers Peretz, Shimon Peres and Shaul Mofaz supported the idea.
Mofaz said that Israel has made similar gestures in the past, and Peres said that the move would strengthen Abbas and be received favorably by the international community.
Foreign Minister Tzipi Livni said Sunday that the Olmert-Abbas meeting "is an important thing, but the main thing is not just a meeting or a lone gesture, but a process of which the gestures are a part."
Livni, who was speaking to Israeli ambassadors serving in Europe, called for further progress and said that moderate Arab and Muslim states should also be involved in the process.