Israeli Prime Minister Menachem Begin, who fractured a thigh bone in a fall last night, will chair a Cabinet meeting in his hospital room Sunday to decide the issue of European participation in the multinational peace-keeping force for the Sinai Peninsula.

Doctors described Begin's condition as good today, and his press secretary, Uri Porat, said the prime minister had done paperwork in his room at Hadassah Hospital. Begin underwent surgery last night to repair the fracture, which he sustained when he fell in his bathroom.

President Reagan and Egypt's President Hosni Mubarak sent get-well messages to Begin today, Reuter reported.

The 68-year-old prime minister's personal physician said Begin would remain in the hospital for about two weeks and spend two or three more weeks recuperating at home.

Begin's aides said the outcome of Foreign Minister Yitzhak Shamir's talks today in Washington with U.S. Secretary of State Alexander M. Haig Jr. would have a significant bearing on the Cabinet action, although Begin has already said he will recommend to his Cabinet that the European nations be disqualified from joining the force.

Israel objects to statements by European nations linking their participation in the Sinai force to a role for the Palestine Liberation Organization in the Middle East peace process.