Israel called off a meeting planned for today with the Palestinians because of a Palestinian ambush on a bus carrying Jewish settlers in which seven people were killed, a government spokesman said.
Spokesman Mr Ra'anan Gissin said the meeting involving a newly formed Israeli committee could go ahead tomorrow after the funerals of those killed in yesterday's attack near a Jewish settlement in the West Bank.
"The committee was supposed to meet but it decided to suspend the meeting. The talks may be renewed tomorrow," Mr Gissin said by telephone. "Meetings cannot take place while there are funerals."
Foreign Minister Shimon Peres held Israel's first high-level talks with the Palestinians for four months last week.
The two sides, who have been locked in conflict since the Palestinians began an uprising against Israeli occupation in the West Bank and Gaza Strip in September 2000, say the talks are not peace negotiations.