Defense Minister Shaul Mofaz (search) told the Israeli Cabinet on Sunday that security officials have completed preparations for Yasser Arafat (search) to be buried in the Gaza Strip, meeting participants said.

The plans include busing Palestinians from the West Bank through Israel to the coastal Gaza Strip and flying in Arab leaders who don't have diplomatic relations with Israel, security officials said.

Palestinian officials have said Arafat, who is ailing in a French hospital, wants to be buried in Jerusalem.

Israel has rejected that outright, signaling the first round of a battle over Arafat's burial.

Israeli officials have suggested Gaza as a possible burial site, but say the Palestinians have not made any requests about a final resting place while Arafat is alive.