Palestinians: Israel must agree on borders

US officials played down hopes that negotiations would begin soon.

"There are currently no plans for an announcement on the resumption of negotiations," Jen Psaki, a spokeswoman for Kerry, told reporters in neighboring Jordan. An Israeli Cabinet minister said no deal was imminent.

A US official said Kerry would consult with Israeli and Palestinian leaders on Friday before ending his visit to the Middle East and returning to the United States but made no mention of an announcement of new negotiations. The official spoke on condition of anonymity because he was not authorized to discuss Kerry's plans publicly.

Kerry has been shuttling for months in search of a formula to allow resumption of talks after a nearly five-year break. Talks have been stalled since late 2008, with the status of Israeli settlements at the heart of the deadlock.

Netanyahu has rejected the Palestinian demands, saying talks should begin without preconditions.

Ahmed Majdalani, another executive committee member, said Kerry has proposed holding talks for six to nine months focusing on the key issues of borders and security arrangements.

He said Kerry would endorse the 1967 lines as the starting point of negotiations and assured the Palestinians that Israel would free some 350 prisoners gradually in the coming months. The prisoners would include some 100 men that Israel convicted of crimes committed before interim peace accords were signed in 1993. Israel has balked at freeing these prisoners in the past because many were convicted in deadly attacks.

Although the plan does not include a settlement freeze, it was not clear whether Israel would accept any reference to the 1967 lines.

Israeli Cabinet minister Yair Lapid said it was "too early to say" whether Kerry had found a formula for talks.

"Secretary Kerry has done a tremendous job in trying to put both sides together," he told The Associated Press. "Of course Israel is more than willing and has expressed its agreement to go back to the negotiation table, but apparently it's going to take a little more time."

While Israel has balked at Palestinian demands, the international community has largely rallied behind the Palestinian position on borders and Jewish settlements.

In a show of displeasure over the settlements, the European Union announced this week it would stop providing research and cooperation grants to Israeli entities that operate in the occupied territories. Israeli leaders condemned the decision.

On Thursday, Israeli President Shimon Peres urged the EU to reconsider the ban, saying it could undermine Kerry's efforts.

Peres urged the EU to "give priority to peace" and warned the ban "could cause another crisis."

Associated Press writer Matthew Lee in Amman, Jordan, contributed to this report.

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