In higher eukaryotes, the Ras and Raf-1 proto-oncoproteins transduce g
rowth and differentiation signals initiated by tyrosine kinases. The R
as polypeptide and the amino-terminal regulatory domain of Raf-1(resid
ues 1-257) are shown to interact, directly in vitro and in a yeast exp
ression system. Raf-1(1-257) binds GTP-Ras in preference to GDP-Ras, a
nd inhibits Ras-GAP activity. Mutations in and around the Ras effector
domain impair Ras binding to Raf-1(1-257) and Ras transforming activi
ty in parallel.