The Israeli cabinet is under pressure to establish a new moratorium on settlement building in the West Bank.
The US wants a halt in construction for a further 60 days.
In return Prime Minister Benjamin Netanyahu is thought to be asking for continued political and financial support from America.
“We are in intense diplomatic negotiations with the American administration to find a solution to allow continuation of the talks”, the Israeli leader said.
The Palestinians have refused to restart talks since a previous moratorium ended a week ago.
On Monday they were backed by the head of the Arab League, Amr Moussa:
“It’s obvious that Israel insists on its settlements construction policy and we are not prepared to accept anymore cover ups.”
The Palestinian leader Mahmoud Abbas is currently in Cairo where he is expected to announce whether talks can continue later this week.