JERUSALEM: Fears have grown in Israel that the US is considering dropping its United Nations Security Council veto to resolutions critical of Israel's handling of the housing issue in East Jerusalem.

Israel's "forum of seven" ministers, an inner cabinet selected by the Prime Minister, Benjamin Netanyahu, is due to meet for the third time in five days tomorrow to try to reach a compromise on US demands for restarting talks with the Palestinians, which have stalled over the settlements issue.

Desperate ... Netanyahu risks losing US support. Credit:AP

The cabinet discussions are supposed to culminate in the release of a document of understanding that will include a range of goodwill gestures towards the Palestinians.

With Israel's relationship with the US in crisis, Mr Netanyahu was yesterday engaged in a desperate attempt to shore up international support for Israel.