Israeli participation will depend on the Swedish government's willingness to "disassociate itself from the exhibit," Shalom told a Jerusalem news conference.
"Then and only then will I consider positively what needs to be done," he said.
"We are talking to the Swedish authorities in order to find a solution. And I would like to believe that we will find a solution in the near future in order to participate in this conference."
Israeli ambassador Zvi Mazel sparked a diplomatic row by vandalising the artwork when it went on show at Stockholm's Museum of National Antiquities Friday as part of a special exhibition running alongside next week's conference.
Despite being ejected from the museum and called into the Swedish foreign ministry Monday, Mazel was unapologetic about his action, saying that the exhibit, which was later repaired, was a "monstrous glorification of suicide bombers and an incitement to genocide against the Israeli people."
Dubbed: "Snow White and the Madness of Truth", the art work features a tiny sailboat floating on a pool of red water. Attached to the boat is a smiling photograph of the bomber, Hanadi Jaradat, who blew herself up at a restaurant in northern Israel in October killing 21 Israelis.
Israeli Prime Minister Ariel Sharon (news - web sites) backed the ambassador's actions, which he said were a suitable response to "anti-Semitic" artwork.
But conference organizer Krister Kumlin has ruled out the exhibit being removed, saying the Swedish government would never agree to such an act of censorship.
Policy Coordination Minister Paer Nuder, the minister in charge of the conference, said there was "no doubt about the fact that the Swedish government distances itself from suicide bombers" and said he hoped Israel would not withdraw from the gathering.
The artwork was designed by Israeli-born Dror Feiler and his Swedish wife Gunilla Skoeld Feiler, both of whom have denied the work is a "glorification" of the suicide bomber.
Some 60 countries are due to take part in the "Stockholm International Forum -- Preventing Genocide" conference, which runs from January 26 to 28.
the suicide bomber.
