Ominously, the ambiguity of the Israeli statement could mean either the expulsion of the Palestinian leader, or his assassination (although very unlikely).
The Security Cabinet met under the supervision of Prime Minister Ariel Sharon to discuss Israel's reaction to Tuesday's two suicide attacks in Tel Aviv and Jerusalem.
Speaking after the meeting, Sharon stated that the Israeli Army's operations would continue against terror organizations and their leaders.
The Palestinian Administration described Israel's decision as a further threat to stability in the region.
Arafat, defiant as ever, stated that no one can get rid of him, and his willingly leaving the region is out of the question. In a speech last night at his headquarters in Ramallah before thousands of Palestinians, Arafat praised their courage and determination.
"Unite for Palestine not for me, shout the slogans not for me but for your country."
The White House commented that the U.S. saw Arafat as part of the solution as well as part of the problem, and stressed that sending Arafat to exile will not serve anything but to give him flexibility for a new movement.
The European Union (EU) and Arab countries warned that expulsion could result in a dramatic escalation of tensions in the region.
Islamic Jihad reacted to the decision by announcing that such an attempt would only serve to increase the power of resistance.
