Associated Press An Israeli soldier checks the IDs of Palestinian civilians in the West Bank town of Hebron yesterday. Nine Palestinians were killed early yesterday morning by Israeli fire, including five in a helicopter missile attack on a house, witnesses said.

HEBRON, West Bank ÷ Israeli forces took over this West Bank city early yesterday, killing nine Palestinians, just hours after Israelâs Cabinet reluctantly agreed to a U.S. proposal to release Palestinian leader Yasser Arafat from his monthlong confinement and allow him to travel freely.

Israel said Arafat was now free to leave his headquarters in the West Bank town of Ramallah. However, Israeli tanks continued to surround Arafatâs compound yesterday, and Palestinian officials said Israel told them Arafat could only travel once six wanted Palestinians had been moved from his headquarters to a prison in the town of Jericho. The prisoner transfer was expected in a day or two, they said.

Israel gave its consent to ending Arafatâs confinement with the understanding that the United States, in turn, would stand by Israelâs side in an increasingly tense showdown with the United Nations over a fact-finding mission to the Jenin refugee camp, government officials said.

At another flashpoint, the Church of the Nativity in Bethlehem, a Palestinian militiaman was killed by Israeli sniper fire yesterday when he walked into a courtyard, the army said. Three monks later carried the body out of the compound. The church, built over Jesusâ traditional birth grotto, has been under Israeli siege for a month, with more than 200 armed Palestinians holed up inside.

In Washington, a U.S. official said an end to the Bethlehem standoff might be imminent, but provided no details. An Israeli diplomat said the emerging deal would give wanted gunmen a choice of exile or prosecution by Israel. However, Palestinian negotiators insisted today that exile or trial were not options.

ãWe are sticking to our stand that there will be no exiling of anyone outside his country,ä Salah Taameri said. ãWe have one position, which is that the people wanted by Israel should go to Gaza without being detained or placed under Israeli investigation. And, if there are any accusations against them, the Palestinian Authority will investigate them and then make the appropriate decisions.ä

Israeli forces entered the West Bank city of Hebron at about 4:30 a.m., with tanks and armored personnel carriers driving in from all directions.

Nine Palestinians, including six civilians, were killed by Israeli fire, Palestinian witnesses said. In the bloodiest incident, a missile fired from an Israeli helicopter hit a one-story house, killing a gunman and four civilians. Two more civilians who rushed to the scene to try to help were killed by helicopter fire, witnesses said.