Israel has denied reports that understandings have been reached with Syria after two years of secret peace talks.

Haaretz, an Israeli daily newspaper, claimed that Israeli and Syrian officials met secretly in Europe several times between September 2004 and July 2006, reaching a framework for a deal that would include an Israeli withdrawal from the Golan Heights, which it captured in the 1967 war.

The newspaper reported that Israel was represented in the talks by Alon Liel, a former top diplomat, and that Ariel Sharon, the former prime minister, had been briefed on the meetings as well as Ehud Olmert, his successor. The Syrian representative in the talks was Ibrahim Suleiman, an American citizen, the newspaper reported.

But reacting to the story this morning, Israel denied any secret talks had been authorised by the country's leadership.

Dov Weisglass, Mr Sharon's former chief of staff, said: "It is very possible that a group of people met, negotiated and formulated a document.

"But, during Sharon's term as prime minister, did the Prime Minister's Office have an officially approved agreement on this or any other similar procedure? The answer is 'no'."

Silvan Shalom, the former foreign minister, said that the first he had heard of any talks was when he read this morning's Haaretz, adding that the last Israeli-Syrian contact he was aware of had been in 2003.

Meanwhile, David Baker, an official in Mr Olmert's office, echoed his denial, saying: "The Israeli Government is unaware of any such meetings."

In its reports, Haaretz claims the talks focused on Israel agreeing to withdraw from the Golan Heights and returning to its pre-1967 borders. Reportedly, Syria demanded that the move be made within five years, though Israel wanted the plan to be gradually implemented over 15 years.

Syria would be willing to discontinue support for Hezbollah and Hamas and cut ties with Iran, the reports added, while Israel would remain in control of the Jordan River and the Sea of Galilee.

Any peace agreement between Israel and Syria would be viewed by the United States and Europe as being of crucial strategic importance because it would bring Syria into the Middle East's pro-Western camp.

The US accuses Syria of undermining the US-backed government in n Lebanon, supporting Hezbollah guerrillas in their war with Israel last summer, and of having an involvement in the killing of Rafik Hariri, the former Lebanese prime minister, in February 2005.

Damascus, the Syrian capital, is also home to Khaled Mashal, the exiled leader of the Palestinian militant group Hamas, which refuses to officially recognise Israel's right to exist or renounce violence. Bashar al-Assad, the Syrian President, is also politically close to Iran, which the US accuses of sponsoring terrorism.

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