Ariel Kenet, head of the department of religious affairs at the Israeli ministry of foreign affairs, yesterday asserted the Vatican had toned down its criticism and now believed that Muslim extremists were to blame, not Israel, for the tension in Nazareth.

The official hinted that construction may take years or may never happen, since the plans would undergo rigorous examination by city, government and international planning committees which would also include Christians.

He read to mediapersons, he summoned to his office in Jerusalem, several sentences from a message which he said came from the Vatican accusing `Islamic extremists' of endangering the lives of Christians in the region. He did not show the letter nor say who wrote it.

The governmentconsent to the building of a mosque near the Basilica of the Annunciation in Nazareth, a Muslim-Christian town inside Israel, was final. Kenet said he was not aware of any more discussion of the issue in Israeli government circles.

The Israeli government has decided to allow Muslims to build a mosque on a 700-square-metre plot near the most important church in Nazareth, where the New Testament describes how Mary was told by Angel Gabriel that she was to have a son, Jesus.

The Vatican and Christian churches in Jerusalem strongly objected and churches closed Monday and Tuesday in protest.

The Vatican, which established diplomatic relations with Israel in 1994, accused the government of Israel of provoking Muslim-Christian tension by caving in to pressure from Muslims and allowing them to build a mosque on what the Catholic church regards as municipal land.

Kenet insisted the Vatican had changed its position and did not blame Israel any more for the tension.

Pope John Paul II is planning a trip toIsrael and the Palestinian areas next year, and Christian leaders have hinted he may call it off if Israel does not offer a compromise on the mosque issue.

According to Kenet, the visit had yet to be officially announced and was nothing more than declaration of intentions.