PLO leaders, who reportedly plan to renounce terrorism, will ask the Palestinian parliament-in-exile this month to approve a document proclaiming an independent state in the Israeli-occupied territories, a senior PLO official said Monday.

The PLO leadership, meeting in the Tunisian capital last week, agreed on the wording of the draft document and on a political program that includes plans for the organization to renounce terrorism, Egypt's state-run news agency said Sunday.The United States has said it will continue to reject the Palestine Liberation Front as the representative of the Palestinians in any Middle East peace talks until it renounces terrorism.

Hani El-Hassan, an adviser to PLO Chairman Yasser Arafat, told reporters in Cairo Monday that if the document is approved by the Palestinian parliament, called the Palestine National Council, the next step will be the establishment of a provisional Palestinian government.

El-Hassan, who spoke after a meeting with Egyptian Foreign Minister Esmat Abdel-Meguid, said: "We will present the PNC with the document of independence, proclaiming the birth of a Palestinian state.

"If the PNC approves the document, it will also take consequent decisions such as the formation of a government, its budget, its relationship to the (PLO) Executive Committee and the makeup of its Parliament," El-Has-san said.

El-Hassan said the PNC session would be held at the end of this month but did not divulge its site.

President Hosni Mubarak has urged the PLO to delay the proclamation until after November elections in Israel and the United States but El-Hassan said the issue "is not linked to the success of a certain person" in the elections.