Palestinian President Mahmud Abbas said yesterday he was open to peace negotiations with Israel, but that as agreed with Egypt talks could only resume when Jewish settlement activity ends.

"There is no objection to returning to the negotiating table or holding any meetings in principle," Mr Abbas told reporters in the Red Sea resort of Sharm el-Sheikh after talks with Egyptian President Hosni Mubarak.

"We have said, and we will continue to say, that when there is a halt of settlement activity and recognised terms of reference, we are ready to resume negotiations," Mr Abbas said.

He said Egypt agreed with his views, contradicting reports in Israel's Maariv newspaper that Mubarak was to press Mr Abbas to accept a US peace plan to restart the talks immediately.

"President Mubarak has stressed that (the status of) Jerusalem be included in the negotiations, that settlement activity must end and there must be clear terms of reference," Mr Abbas said.

Later at a press conference, Egyptian Foreign Minister Ahmed Abul Gheit said Washington would present him and Egyptian intelligence chief Omar Suleiman with its position when they visit the United States next Friday.

"The process is prolonged and will need patience, rigour and a thought-out position so that the Palestinians are not placed in a difficult position," the official Mena news agency quoted him as saying.

In Israel, Prime Minister Benjamin Netanyahu told members of his Likud party that the time was ripe for resuming the peace process.

"Since the formation of this government, I have called for restarting negotiations with the Palestinians without preconditions," he told the Likud members in Parliament yesterday.

"I believe the negotiations about entering negotiations have held us up long enough. In recent weeks I got the impression that there is something of a change in the air. I hope there is a ripening that will allow the peace process to start," Mr Netanyahu said.