Palestinian President Yasser Arafat died today in a Paris hospital at the age of 75.

The announcement was made by senior Palestinian representative senior aide Tayeb Abdel Rahim, ending days of speculation about Mr Arafat’s health.

The tearful Abdel Rahim told the world: “The Palestinian leadership mourns Yasser Arafat ... who died at 4:30 this morning.”

His body will be flown to Cairo for his funeral and he will lie in state there for world leaders to pay their respects. From there his body would go on to Ramallah in the West Bank where he will be buried.

But a top Palestinian cleric revealed that Mr Arafat would be buried in a concrete coffin that could be moved later to Jerusalem.

That is seen as a way to get round Israel’s refusal to let the Palestinian leader be buried in Arab East Jerusalem, the site of his choice. Israel annexed Arab East Jerusalem and insists it is part of its capital in a move never recognised internationally.

In the refugee camps of the West Bank and Gaza strip Palestinians openly wept over the death of their leader.

Thousands took to the street to march and shout slogans in Mr Arafat’s honour.

Shopkeepers hung portraits of the leader in their windows and some people draped their cars in black flags of mourning.

In Jordan, where most displaced Palestinian refugees exist after the West Bank and Gaza Strip, there was an emotional reaction to Mr Arafat’s death.

“It feels like I lost a father and a good friend,” said 55-year-old Mohammed Sbeiha in a quivering voice.

“He was a great man, he cared for the Palestinian people and for the Palestinian cause, he tried to help refugees like me, but couldn’t do much because the Israelis don’t want us back in our homes in Palestine.

Shopowner Jalal al-Yasouri, 28, added: “I was very sad, although I expected Arafat would die. But the Palestinian cause will not die because it’s not connected to one person; It’s linked to a territory, a nation and to history and it will continue.”

Around the world Prime Minister Tony Blair was one of the first to pay tribute to Mr Arafat, saying he symbolised the Palestinian national movement.

He said the Palestinian President “led his people to an historic acceptance and the need for a two-state solution which we must continue to work tirelessly to achieve.”

Foreign Secretary Jack Straw - who described Mr Arafat as “towering figure in the Middle East” - will attend the funeral on behalf of the British government.

In Washington, US President George W Bush has expressed his condolences to the Palestinian people.

Abdullah Ahmad Badawi, Prime Minister of Malaysia and the chairman of the 57-nation Organization of the Islamic Conference paid his tribute.

“The death of Yasser Arafat marks not only the departure of a great leader but also a turning point in the history of the Middle East,” he said

Mr Abdullah went on: “We call upon the members of the quartet to closely monitor the situation in Palestine, restrain Israel from exploiting the present circumstances and take urgent measures to implement the roadmap for peace in the Middle East.”

French President Jacques Chirac called him a “man of courage and conviction who, for 40 years, has incarnated the Palestinians’ combat for recognition of their national rights.”

EU foreign policy chief Javier Solana added that the best tribute to Arafat would be to renew efforts to implement the 2003 “road map” peace plan and create a Palestinian state.

Russian President Vladimir Putin said Mr Arafat had “dedicated his life to the Palestinian people’s just cause, the fight for their inalienable right to crate an independent state, which would coexist with Israel within recognized and secure borders.”

Irish Foreign Minister Dermot Ahern said it was “tragic” that Arafat did not live to see an independent Palestinian state.