The US has offered Israel a package of incentives in exchange for a settlement construction freeze in the West Bank, diplomatic sources say.
Under the reported plan, Israel would stop construction for 90 days in the West Bank but not in East Jerusalem.
Israeli media say the cabinet has been discussing the package.
The settlement row threatens to derail direct Israeli-Palestinian peace talks, which resumed in the US in September after a break of almost 20 months.
In addition to the 90-day construction freeze, the plan includes a US pledge not to seek any further extension to the moratorium, the diplomatic sources say.
In return, Washington reportedly offers Israel various security guarantees and commits itself to fighting international resolutions critical of Israel.
The US-brokered Middle East peace talks stalled only a few weeks after their resumption in September.
The Palestinians - backed by the Arab League - have pledged not to return to the talks without a full settlement construction freeze, but have given US negotiators until early November to try to break the impasse.
Israel has occupied the West Bank, including East Jerusalem, since 1967, settling close to 500,000 Jews in more than 100 settlements. They are considered illegal under international law, although Israel disputes this.
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Source: http://www.bbc.co.uk/go/rss/int/news/-/news/world-middle-east-11751713
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