Israel has put off a response to a Palestinian proposal for intensive talks in Egypt as US President Mr Bill Clinton urged both sides in farewell messages not to give up on peace.
"The Israelis informed us today that they will not have a decision today on holding marathon talks in Egypt. They will have the answer tomorrow", Palestinian peace negotiator Mr Saeb Erekat said.
"The proposal is to hold talks in a place outside Cairo, not in Taba", he said, referring to an Egyptian Red Sea resort that had been mooted as a venue.
Prime Minister Ehud Barak's inner peace cabinet had been expected to convene to discuss Palestinian President Yasser Arafat's proposal to start the negotiations, which would be held with Mr George W. Bush in the Oval Office.
But the ministerial meeting would have clashed with the funeral of 16-year-old Ofir Rahum, whose bullet-riddled body was found in the West Bank on Thursday after he left home for a date with a woman he met on the Internet.
A government spokeswoman said the peace cabinet session would not go ahead before Saturday evening at the earliest.
Israeli security sources said they suspected the teen was lured into a trap by Palestinian gunmen, almost four months into a Palestinian uprising for independence.
Both sides condemned the killing, which took the death toll in 16 weeks of violence to at least 309 Palestinians, 45 Israelis and 13 Israeli Arabs.
Diplomatic sources said Mr Barak did not oppose the new peace talks, which could be held round-the-clock to seek a deal before a prime ministerial election in Israel on February 6th. But they said he saw almost no chance of an agreement so soon.
A peace agreement before the election would offer Mr Barak his best chance of defeating right-wing challenger Mr Ariel Sharon, but new opinion polls confirmed Mr Sharon has a big lead.
Reuters