Israel will free 500 Palestinians on Monday in its largest prison release in nearly a decade as a goodwill gesture to bolster peace efforts with Palestinian President Mahmoud Abbas. Palestinians say Abbas needs a large-scale release to persuade militant groups to formalise a ceasefire he agreed with Israeli Prime Minister Ariel Sharon at a Feb. 8 summit. Some 8,000 Palestinians are held by Israel. Prospects for peacemaking in the Middle East have strengthened since Abbas was elected to succeed Yasser Arafat on a platform of non-violence and persuaded the armed factions to follow a de facto truce. The release of prisoners comes a day after Israel's cabinet approved a plan to withdraw from the Gaza Strip, marking the first time Israel decided to dismantle settlements on land Palestinians want for a state. None of the prisoners -- the first of 900 to be freed in coming weeks -- had been found guilty of attacks that killed or injured Israelis. Most had already served at least two-thirds of their sentences. They will be released at crossing points to the West Bank and Gaza in the biggest release since 1996, when 800 were freed.