RAMALLAH, West Bank ? Yasser Arafat delayed the formation of a new Cabinet on Tuesday by blocking his premier’s choice for security chief, a move that will slow efforts to restart peace talks with Israel after a three-month freeze, Palestinian officials said.

Prime Minister Ahmed Qureia has assigned all Cabinet portfolios except interior minister, the officials said. Qureia met with Arafat on Tuesday, but could not resolve the dispute over the post.

Underlying the argument is Arafat’s refusal to relinquish control over some of the security services. Qureia’s candidate for interior minister, Gen. Nasser Yousef, seeks broad powers.

Qureia’s emergency government expired Tuesday night, but he said he would present his new Cabinet to parliament by next week.

Waiting in the wings are the Israelis, who established tentative contacts with Palestinian officials in recent days, hoping to arrange a meeting between Qureia and Israeli Prime Minister Ariel Sharon once a Palestinian government has been formed.

The leaders would talk about a possible truce and how to break the deadlock over the U.S.-backed “road map” peace plan for creating a Palestinian state.

In what they described as a gesture to Qureia, Israeli defense officials said soldiers today would lift internal closures around all West Bank Palestinian towns except for Jenin and Nablus in the north.

The officials, who spoke on condition of anonymity, said the Defense Ministry would discuss removing illegal settlement outposts in the West Bank. They said it would show Israel was serious about negotiating with Qureia’s new government when it is finally formed.