Former US President Jimmy Carter says he's recovered from a "bout with a virus" and has resumed his relatively hectic schedule at the age of 86.

Carter tells CBS television that "I feel fine." He says he had "one day of intensive hospital care and I've been out working ever since."

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The former president, asked about prospects for Middle East peace, said it was time for Israel to give up its building of settlements in land the Palestinians claim as their own.

"The key thing is for Israel to give up its ambition to occupy and control Palestine," Carter said on CBS' "The Early Show."

"As long as they are still building Israeli homes in Palestine, against the wishes of the Palestinian people, that makes it very difficult for the Palestinians or the Arab world to comply with the desires of the United States, and that is to have peace.

"But it's always better, when you look at the Middle East, to have some hope," Carter said.

He also spoke approvingly of Secretary of State Hillary Rodham Clinton, saying there was no better mediator.

"I don't think we could have any better interlocutor or mediator than Hillary Clinton, who is tough, competent, knowledgeable, intelligent and I think very determined to be successful. So, if anybody can do it, I think Hillary Clinton can do it."

Carter has been among America's most active former presidents, and he was in the capital Monday to look after a Habitat for Humanity project. The Democrat was president for one term, losing to Republican Ronald Reagan in 1980.