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The plan, drafted in part by ex-military and intelligence officials, includes land swaps and no right of return.
The Labour party vote could determine the fate of Israel's governing coalition.
Barak and Ayalon to face each other in runoff elections for Labour leadership.
Television polls predict a second round runoff between Ehud Barak and Ami Ayalon.
The party leadership election could force the prime minister to resign.

Sexual humiliation of the kind practised by US military police at Abu Ghraib prison does little to help interrogators gain useful information, say Israeli counter-terrorism experts.

Middle East peace activists have warned that "time is running out" on an Israeli-Palestinian two-state solution.
Featured on Al Jazeera
Swathes of the British electorate continue to show discontent with all things European, including immigration.
Astronomers have captured images of primordial galaxies that helped light up the cosmos after the Big Bang.
Critics assail British photographer's portrayal of indigenous people, but he says he's highlighting their plight.
As Western stars re-release 1980s charity hit, many Africans say it's a demeaning relic that can do more harm than good.
 
 
 
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