Their tough stance came as Israeli Prime Minister Benjamin Netanyahu and his inner council met to discuss US ideas on the peace process and a top American envoy held talks with Israeli defence officials.

"There will not be any negotiations with Israel, in any form -- direct, indirect or parallel -- without an end to settlement," said Azzam al-Ahmad, a senior member of the central committee of Fatah, the secular party of president Mahmud Abbas.

He spoke to AFP by telephone from Cairo, where Arab League foreign ministers on Wednesday had ruled out a resumption of negotiations without a "serious offer" that would ensure their success.

Ahmad called on Washington to officially declare its definition of the Palestinian territories to include all the lands occupied by Israel during the 1967 Middle East war, including the West Bank, Gaza Strip and east Jerusalem.

And he urged the Obama administration to state its official position on security and borders.

"We are starting to find that the American position on these issues is confused," he said.

Earlier this week, US Middle East envoy George Mitchell held talks with Netanyahu and Abbas to try to find a way to keep the sides engaged in the search for peace.

He proposed six weeks of "parallel" talks, in which negotiators would hold separate discussions with the Americans in a format that would not be classed as "negotiations," a Palestinian official told AFP on Wednesday.

In his talks with Abbas, Mitchell suggested that in the six weeks starting from Sunday, the two sides meet US officials to discuss security, border arrangements and any other issues raised by the parties.

Asked whether Israel would consider such a parallel format, an Israeli official told AFP they were "open" to the idea.

"We obviously prefer direct talks with the Palestinians, but because they are steadfast in their refusal to engage directly over the issues ... that is something to which we are open," he said.

There was no immediate word on the content of Netanyahu's talks with his Forum of Seven, although a government official confirmed they had met.

Meanwhile, Dennis Ross, a senior advisor to US President Barack Obama, held talks in Tel Aviv with top defence officials, including Defence Minister Ehud Barak, military Chief of Staff Lieutenant General Gabi Ashkenazi and the head of military intelligence, Brigadier General Aviv Kochavi.

"During the talks they discussed the security aspects of a possible peace agreement with the Palestinians," Barak's office said..

The peace process was thrown into disarray last week after Washington acknowledged it had failed in to persuade Israel to renew restrictions on settlement construction.

US officials are now trying to find new ways for both sides to engage in some form of talks.

Following the Arab League meeting, Arab and Palestinian officials were likely to step up their efforts in coming days to secure further recognition of a Palestinian state within the 1967 borders, Ahmad said.

On Wednesday, Abbas held a phone conversation with Bolivian President Evo Morales, who confirmed La Paz would be recognising a Palestinian state "in the coming days," the Fatah official said.

Over the past few weeks, Palestinian officials have been talking up their options if peace talks with Israel totally collapse -- one of which is seeking recognition for a unilateral declaration of statehood.

Earlier this month, Brazil and Argentina recognised a Palestinian state, with Uruguay soon to follow suit. And this week, European Union also expressed "its readiness, when appropriate, to recognise a Palestinian state."

Israel opposes such a move, saying a Palestinian state should be established only through negotiations.

Shortly after the Cairo talks, the US House of Representatives approved a measure condemning any recognition of a Palestinian state, and backing a negotiated solution to the Israeli-Palestinian conflict.

The European Union also issued a new plea to speed up progress towards a two-state solution encompassing a "viable" Palestine alongside a "secure" Israel.

earlier related report
EU, US hammer home plea for two-state solution
Brussels (AFP) Dec 16, 2010 - The European Union and the United States on Thursday issued a new plea to speed up progress towards a two-state solution encompassing a "viable" Palestine alongside a "secure" Israel.

After meeting US Middle East envoy George Mitchell, on his way back from the region, EU foreign policy chief Catherine Ashton said: "We believe that urgent progress is needed towards a two-state solution ... that ends the occupation that began in 1967".

There was no word on a timeline or on a unilaterel recognition of a Palestinian state. And the statement made no mention of the settlements issue.

Calling once again for negotiations, Ashton and Mitchell said in a statement it was vital for either side to take into consideration "Israel's legitimate security concerns" and the "Palestinian's legitimate national aspiration".

Brussels and Washington also commended the work of the Palestinian Authority "in building the institutions of the future State of Palestine" and pledged further support for Palestinian institution-building.

They were concerned about the situation in Gaza, however.

Ashton said she had reiterated to Mitchell, the EU policy "calling for the immediate, sustained and unconditional opening of crossings to allow the flow of humanitarian aid, exports and people."

In Israel, Benjamin Netanyahu met with his inner Forum of Seven to discuss ideas for rescuing peace talks that were raised with Mitchell.

"The peace process has arrived at an impasse. The Palestinians are systematically refusing to enter direct negotiations with Israel, unfortunately," said a government official, speaking on condition of anonymity.

"The international community should appeal to the Palestinians to change their position and agree to come back to the negotiating table."

Mitchell held two days of talks with Netanyahu and Palestinian president Mahmud Abbas to try to find a way to keep the sides engaged in the search for peace.

But Arab diplomats on Wednesday ruled out a resumption of Israeli-Palestinian negotiations without a "serious offer" which would ensure their success.

They also decided to approach the UN Security Council to seek a resolution against Israel's ongoing settlement building.

Direct peace talks collapsed last week after Washington failed to secure Israel's agreement to a new freeze on settlement building -- the Palestinian condition for continuing to negotiate.

The US focus is now on new ideas, with Mitchell proposing six weeks of "parallel" talks, where negotiators would hold separate talks with the Americans in a format which would not be classed as "negotiations", a Palestinian official told AFP on Wednesday.

The Forum of Seven ministers was also to consider the possibility of widespread international recognition of an independent Palestinian state, the Maariv daily said.

Over the past few weeks, Palestinian officials have been talking up their options if peace talks with Israel totally collapse -- one of which is seeking recognition for a unilateral declaration of statehood.

Earlier this month, Brazil and Argentina recognised a Palestinian state, with Uruguay soon to follow suit. This week, EU foreign ministers expressed readiness to recognise such a state at an "appropriate" time.

Israel opposes such a move, saying a Palestinian state should only be established through negotiations.

And the US House of Representatives late Wednesday approved a measure condemning unilateral measures to declare or recognize a Palestinian state.

A House resolution, introduced by Democratic representative Howard Berman, reaffirms the "strong support" in the lower chamber of the US Congress "for a negotiated solution to the Israeli-Palestinian conflict resulting in two states, a democratic, Jewish state of Israel and a viable, democratic Palestinian state."

But the text also "reaffirms its strong opposition to any attempt to establish or seek recognition of a Palestinian state outside of an agreement negotiated between Israel and the Palestinians."

It urges Palestinian leaders to "cease all efforts at circumventing the negotiation process" and calls on foreign governments "not to extend such recognition."

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