Palestinian Authority officials maintain that any American peace plan anchored in two principles: 1) that it be a permanent, not interim, agreement, and 2) that it include a pre-determined timetable for implementation of all stages, including the core issues.

A Palestinian official familiar with the negotiations said that up to this point, the United States has kept its views to itself, and is not acting as a mediator but rather as a passive observer, giving the impression that the Israelis can do as they wish without any constraints, especially when it comes to building in the settlements. "The Palestinian position is that any agreement must be based on the 1967 borders, and once that is agreed upon we understand that one cannot evacuate settlements within 24 hours. Therefore one can discuss a timetable; if we get to the point of discussing timetables it would mean significant progress, but we aren't there yet."

PLO senior officials say the possibility of a permanent agreement was raised during the talks that led to the renewal of negotiations, but meanwhile Israel has not agreed to that principle. Furthermore, according to these officials, as long as Prime Minister Benjamin Netanyahu does not agree to the 1967 borders and continues to talk about maintaining Israeli sovereignty over all of Jerusalem, there cannot be a breakthrough, especially since there are other important issues such as the refugees and the prisoners to be dealt with.

PLO Executive Committee member Hanan Ashrawi told Haaretz that to her knowledge, the Americans have not tabled any suggestions or a draft peace treaty, and she stressed that any offer which lacks a timetable and isn't termed a permanent solution cannot be accepted by the Palestinians: "Israeli conduct throughout the years has proven that whatever is defined as a temporary stage becomes permanent and cannot lead anywhere, therefore the feeling among the Palestinian leadership is that Israel is doing its best to force us to leave the negotiating table."

U.S. Secretary of State John Kerry is due to meet Palestinian President Mahmoud Abbas in Bethlehem on Wednesday. Palestinian sources believe Abbas will express his disappointment with Israel's actions, especially the continued building in settlements, as well as with the absence of U.S. pressure on Israel over settlement expansion. The sources say Abbas will ask Kerry for Washington to take a more active role and present guidelines for a permanent agreement before the nine-month period of negotiations ends in March.

Meretz chairman Zahava Gal-On said Monday that Kerry plans to present a draft framework agreement on a permanent status between Israel and the Palestinians. Netanyahu said in response that Israel would examine any proposal, but will not "accept any external dictates."