Yassir Arafat was on a life-support machine in a Paris hospital today, as his doctors denied news reports that he had already died.

Two international news agencies, picking up Israeli television bulletins, reported from Jerusalem that the veteran Palestinian leader had either died or was "brain dead" - kept alive artificially.

But a spokesman at the Percy hospital in southwestern Paris suburb of Clamart told reporters crowded outside: "Mr Arafat has not died."

The spokesman, Christian Estripeau, said Mr Arafat's health situation had become "more complicated" but said the hospital was not able to give other details because of the family's desire for privacy.

Mr Arafat was moved to intensive care yesterday afternoon. A French medical source said earlier that he had been hooked up to a life-support machine and was not responding to treatment. The source said: "He won't recover."

The same source added that that the 75-year-old had not received proper medical care while kept under virtual house arrest by Israel at his Ramallah headquarters.

In Washington, President Bush was asked to comment on the news at a press conference to mark his re-election. Without knowing that the report was about to be denied, Mr Bush said: "My first reaction is: God bless his soul. And my second reaction is that we will continue to work for a free Palestinian state that is at peace with Israel."

Mr Arafat's death would usher in a period of grave uncertainty for the Palestinian people and for the Middle East peace process.

Mr Arafat has both led and symbolised the Palestinian struggle for statehood since the 1960s. He returned to the Occupied Territories from exile ten years ago, under interim peace accords signed with Israel at Oslo in 1993.

But since Mr Bush was elected in 2000, Israel and America have regarded Mr Arafat as an obstacle to peace talks rather than a negotiating partner. Both accuse him of encouraging violence in the uprising against Israeli occupation in Gaza and the West Bank that broke out in 2000, a charge he denies.

Until he was airlifted to France, Mr Arafat had been effectively confined to his shell-shattered headquarters by Israeli forces for two and a half years. His illness has prompted fears that factional in-fighting will break out among the various Palestinian political and military groups.

He has named no successor, and until now aides have been keen to say he was still in charge.

He has temporarily delegated powers to two men - Ahmed Qureia, the Palestinian Prime Minister, and Mahmoud Abbas, his deputy in the Palestine Liberation Organisation.

Mr Arafat flew to France on Friday after doctors at his compound in the West Bank town of Ramallah were unable to determine why he was fainting, vomiting and suffering severe stomach pains. A blood condition is suspected, but no clear diagnosis has been made public.

On Tuesday, he was said to be responding to treatment - and a message of congratulations was sent in his name yesterday to Mr Bush after his re-election.

Palestinian leaders and security chiefs were due to meet in Ramallah this evening for emergency talks on Mr Arafat's health and his possible succession. Reuters reported that some of Mr Arafat's powers over Palestinian security and finances were transferred today to Mr Qureia.

Mossad, the Israeli intelligence service, Shin Bet, its domestic counterpart, and Israeli army commanders also discussed Mr Arafat's condition. Israel has prepared contingency plans for Mr Arafat's death, codenamed New Leaf, including how to deal with possible Palestinian riots and how to prevent attempts to bury him in Jerusalem.

Ariel Sharon, the Israeli Prime Minister, has said he will not permit Mr Arafat to be buried in the disputed city, claimed by both Israel and the Palestinians as their capital. The Israeli army has been placed on high alert.

Shimon Peres, the Israeli opposition leader who shared the Nobel peace prize with Mr Arafat in 1994, said that the Palestinian leader's death would have great impact on the region.

"What has happened (already) is that a new leadership is forming," Mr Peres told Israel Army Radio.

The new leadership appeared to be "more firmly grounded, and also has great determination to bring an end to the terrible problem of the Palestinian nation," he added.

"They (the Palestinians) have to correct their main error, which is the takeover of Palestinian politics by terrorists and I hope that the group that will come to leadership understands this and will act accordingly."

Explore World News

• World Agenda

• Iraq News

• US & Americas News

• Europe News

• Middle East News

• Afghanistan News

• Asia News

• Africa News

• Ireland News

Times Recommends

• Times Charity Appeal: SolarAid
• Is it Black Monday all over again for Dubai?
• Behind the scenes at the biggest deal