Prime Minister Benjamin Netanyahu and the United States envoy for the Middle East George Mitchell failed to reach an agreement on the issue of West Bank settlements during a meeting Wednesday in London, according to spokespeople for the two men, "Haaretz" reported.
However, Netanyahu and Mitchell did make progress in their meeting, the spokespeople said in a joint message afterward, adding that the two agreed on the need to begin meaningful diplomatic negotiations between Israel and the Palestinians with the aim of reaching a regional peace agreement.
The next round of talks was scheduled for the beginning of next week in Washington. Israel will be represented at those talks by the PM's special envoy Yitzhak Molcho and Defense Ministry chief of staff Mike Herzog, who both participated in Wednesday's meeting.
The two will meet with Mitchell to once again the U.S. demand that Israel implement a settlement freeze.
Prior to the meeting, Netanyahu said his government was making progress toward reopening talks with the Palestinians and hoped to be able to do so shortly.
"We are making headway. My government has taken steps both in words and deeds to move forward," he said.
Netanyahu has pledged not to build any new settlements but wants to enable what he calls "natural growth" of existing enclaves.
The prime minister, whose comments during a photo opportunity were relayed to reporters by his spokesman, expressed hope the two sides would "shortly be able to resume normal talks."
"The goal is a wider peace, which is our common goal," he said.
Meanwhile, Palestinian officials said Wednesday that President Mahmoud Abbas is open to a meeting with Netanyahu at the United Nations next month.
The meeting would be the first between the two leaders since Netanyahu took office in March.
Abbas has refused to reopen peace talks until Netanyahu halts all construction in Jewish settlements in the West Bank. The Israeli leader rejects this demand.
The Palestinian officials said Abbas is not dropping his conditions. They say the meeting would be a chance to talk, but would not amount to negotiations.
The Palestinian officials spoke on condition of anonymity because a formal meeting hasn't been set.
Earlier, Israel's ambassador to the United Nations Gabriela Shalev told reporters that a meeting between Netanyahu, Abbas and U.S. President Obama at the UN was being planned, but declined to elaborate.
Meanwhile, the British Guardian reported that President Barack Obama is close to breaking the stalemate between Israel and the Palestinians by getting Israel to agree to a partial settlement freeze in exchange for a tougher U.S. stand against Iran's nuclear program.
The report, which cites U.S., European, Israeli and Palestinian officials, said that Obama will be ready to announce the resumption of long-stalled peace talks between Israel and the Palestinians by the end of September.