A statement issued by a UN spokesman in New York said Mr. Annan saw the appointment as an important step towards realizing the vision of the Road Map peace plan devised by the Quartet of the UN, European Union, Russia and United States: two States – a secure Israel and a sovereign, democratic, independent and contiguous Palestine – living side by side in peace and security.

"The Secretary-General believes that Mr. Wolfensohn's blend of vision and experience make him uniquely qualified for the task of overseeing and coordinating the international community's efforts in support of the disengagement initiative," the statement said.

It added that Mr. Wolfensohn will have a "particular role to play in relation to the methodology of withdrawal, including the disposition of assets, and the post-withdrawal revival of the Palestinian economy, including investment and financing."