Israeli Prime Minister Ehud Olmert and Palestinian President Mahmoud Abbas will try to draw up a preliminary document of understandings to present to Washington next month, Israeli media reported on Sunday.
Olmert and Abbas meet again in Jerusalem on Sunday to pursue U.S.-brokered talks with a goal of achieving a limited peace agreement before President George Bush leaves office in January. Their last talks were Aug. 6.
Mark Regev, a spokesman for Olmert, confirmed the Israeli leader was pressing to reach a deal, but not necessarily by as soon as next month.
"We will continue all our efforts to reach an historic joint Palestinian-Israeli agreement," Regev said. "I'm not aware of a time limit."
Israel Radio said the leaders may aim to take a limited deal to Washington by next month so Bush can announce that an agreement in principle has been reached.
The Haaretz newspaper suggested Olmert, dogged by a police corruption probe, was interested in reaching a deal with the Palestinians before he steps down after his Kadima party has chosen a new leader in a contest scheduled for Sept. 17.
Under Israeli law, Olmert could remain in office for weeks after he resigns until a successor puts together a new government, but he may lack the clout to make any significant diplomatic commitments.
Olmert's talks with Abbas come days after a visit by U.S. Secretary of State Condoleezza Rice which appeared to make little progress. Rice had suggested in the past that the sides draw up a draft of understandings by September.
At Sunday's meeting, Olmert may propose international oversight for talks aimed at resolving the two sides' dispute over Jerusalem, the Haaretz newspaper said.
Israel claims Jerusalem as its capital, in a move not recognised internationally, and Palestinians want the city as capital of a future state.
Abbas is expected to ask Olmert to free more Palestinian prisoners, in addition to 198 Israel released a week ago, Palestinian officials said.
An Israeli ministerial committee convenes on Sunday to discuss further prisoner releases, including hundreds which Islamist Hamas has demanded in exchange for an Israeli soldier held captive in Hamas-ruled Gaza since 2006, the radio said.