Prime Minister Binyamin Netanyahu and US special Mideast envoy George Mitchell failed to reach an agreement on the West Bank settlement issue after meeting in Jerusalem on Wednesday for the second time in two days, JPost reported.
Such an agreement between the White House and Jerusalem could allow for a much-touted tripartite meeting between Netanyahu, Palestinian Authority President Mahmoud Abbas and US President Barack Obama on the sidelines of the UN General Assembly next week.
Mitchell, who had been expected to return to the US later in the day, decided to extend his stay in the region until the weekend and will meet with Netanyahu again on Friday after visiting Jordan on Thursday.
Officials said Wednesday's meeting was "goo" but did not give further details.
The Arabic language London-based daily Asharq Al-Awsat quoted Palestinian sources as saying that the Palestinian Authority feared the possibility that Washington would pressure Abbas to resume negotiations with Israel without receiving a commitment that settlement construction would stop.
Abbas has said repeatedly he will not negotiate again until there is a complete settlement freeze, something Netanyahu has declared he will not do.
On Tuesday night, Netanyahu held a meeting of the inner cabinet to discuss his talks with Mitchell, the first such meeting to be attended by Shas chairman Eli Yishai. Also attending were Defense Minister Ehud Barak, Foreign Minister Avigdor Lieberman and ministers Dan Meridor, Moshe Ya'alon and Bennie Begin.
The fact that Mitchell met with Netanyahu on Tuesday morning, went to Abbas in Ramallah in the afternoon and met with the prime minister again on Wednesday morning left the impression that he was shuttling questions and answers back and forth.