The deal was struck after King Hussein, Israeli Prime Minister Yitzhak Rabin and top aides managed in marathon talks to bridge gaps on the key thorny issues of water rights, border demarcation and security arrangements.
The surprise treaty, following weeks of talks, was initialed by Israeli Prime Minister Yitzhak Rabin and his Jordanian counterpart Abdul-Salam al-Majali in Amman. King Hussein and Rabin said they will formally sign it in an unspecified area along their borders in a week before sending it to their parliaments for ratification.
The atmosphere inside the ceremony hall was warm and cordial. Israeli Foreign Minister Shimon Peres even embraced the king and kissed him on his cheeks.
The draft peace was subsequently unanimously approved by Israel's Cabinet in a special session.
In Washington, a U.S. official said President Bill Clinton might attend the ceremony when the two sides formally sign a peace treaty -- making it the first Middle East visit of a serving U.S. president since Jimmy Carter's trip in March 1979 to cement the treaty between Israel and Egypt.
Officials said Jordan and Israel will finalize details on the treaty's supplements during three days of technical talks that will resume in Jordan's Red Sea port of Aqaba on Tuesday.
King Hussein and Rabin appeared satisfied with the results saying they restored their legitimate rights. They said the deal would bring "peace with dignity" to both states.
"No one lost, no one won, everybody won," Rabin said. "We found ways to bridge the limited gaps."
Previous talks stumbled mainly over the thorny issues of security, water rights to the Jordan and Yarmouk rivers, and a claim by Jordan to about 350 square kilometers of mostly arid land.
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