"Saudi King Abdullah will donate $10 million and the amount could increase to $12 million" depending on the number of families at the camps, Siniora said during a news conference at the Grand Serail Friday.

"This is yet another generous donation from Saudi Arabia in the extremely hard times that both Lebanese and Palestinians are going through," Siniora said.

The U.N. Relief and Works Agency (UNRWA) said earlier this month that it was launching an urgent appeal for $12.7 million to address the needs of the thousands of Palestine refugees displaced by the fighting between Fatah al-Islam militants and the Lebanese army in and around Nahr al-Bared.

Siniora said that each family will be granted 2 million Lebanese Pounds (around US$1,330).

Picture: Refugees from the Palestinian Nahr al-Bared refugee camp sit in a vehicle after being evacuated, in northern Lebanon

Sources: Naharnet, Ya Libnan