The United States is suspending its demand that the Israelis issue a new freeze on Jewish settlement building before Middle East peace talks can resume, a White House official said Tuesday.
According to the Israeli media, the United States and Israel have failed to agree a new building freeze in Jewish settlements in order to kick start stalled peace talks with the Palestinians.
"The United States and Israel will announce in the coming hours the failure of these discussions, which were aimed at restarting negotiations with the Palestinians," the army radio reported.
Public radio said the United States had "given up on its efforts to reach an accord with Israel on a new freeze on housing construction in the West Bank."
And various media reported that Israeli Defence Minister Ehud Barak told parliament's defence and foreign affairs committee earlier in the day that the two countries had not reached a deal on a freeze.
The Haaretz daily newspaper said "Israel and the United States will (now) try to find other means to move the peace process forward."
Newly relaunched direct peace talks ran aground at the end of September after the expiry of a 10-month Israeli ban on settlement building.
Last week, a Palestinian official said the United States admitted it had failed.
"The US administration has informed us that the Israeli government did not agree to a new freeze," said the official. "The US administration will continue its efforts."
Washington declined to say whether or not its efforts had failed.
In an attempt to revive the talks, the United States offered Israel a package of incentives including 20 F-35 fighter planes, worth three billion dollars (2.3 billion euros), in exchange for a new three-month ban.
Washington also committed not to seek an additional freeze and pledged to provide Israel with diplomatic support, including vetoing anti-Israel resolutions at the United Nations.
The package would also have allowed Israel to continue building in east Jerusalem.