"We don't know what they are talking about when they say progress," the official said on condition of anonymity.

"We are not aware of any progress and we have not been informed of any progress. They are trying to create a positive atmosphere to help make (Israeli Prime Minister Benjamin) Netanyahu's visit to the US successful," he charged.

A senior White House official on Friday said US-brokered indirect talks had "made progress and the gaps (between the two sides) have been narrowed," in comments which surprised the Palestinians.

His comments were made just days before Netanyahu holds talks with US President Barack Obama, with the two likely to discuss a move from indirect talks to direct Middle East negotiations.

The official said Washington was "pushing hard" for a shift to direct talks — a move which Palestinian President Mahmoud Abbas has insisted will only take place if there is progress on the key issues of borders and security.

"As soon as there is progress (on borders and security) we'll shift to direct talks, but up until now we haven't received even a single sign that might indicate progress on those issues," Abbas said last week in remarks published by several Israeli newspapers.

The indirect talks, which began May 9, are regarded as a first step toward renewing direct negotiations, which collapsed in December 2008 when Israel launched a devastating 22-day offensive on Gaza.

Abbas has reportedly handed US special envoy George Mitchell a document outlining the contours of the Palestinian position on several key issues, the London-based Arabic daily Al-Hayat reported Saturday.

Asked to comment on the report, a senior Palestinian source dismissed it out of hand. "The information is totally false," he insisted.

On Sunday, Netanyahu also insisted on direct peace talks with the Palestinians. After a rocky meeting between Netanyahu and Obama in March, both Israel and the United States are taking great pains to sound more upbeat this time around. But underlying the meeting is the fact that despite a year and a half of US diplomacy, Israelis and Palestinians can't even agree on whether to sit down together to talk.

“I have been willing to meet Abu Mazen from the first day of this government,” Netanyahu said Sunday at a session of the Israeli Cabinet, referring to Abbas, “and the time has come for him to be prepared to meet with us, because there is no other way to advance peace.”

“I hope this will be one of the results of the visit to Washington,” Netanyahu said.

The Palestinians have demanded that Israel first freeze all construction in the West Bank and East Jerusalem — captured areas they claim as part of a future state. They also want Netanyahu to resume talks from where they broke off in December 2008 under his more dovish predecessor, Ehud Olmert.

Netanyahu has refused these demands, though he has slowed settlement construction.

Abbas said last week that Israel remains intransigent and that he saw no reason to talk face to face.

“If (Netanyahu) wants direct talks, he knows he has the key,” said Palestinian negotiator Saeb Erekat.

Looming over the meeting is the approaching end of Israel's settlement slowdown, which it implemented last year to placate the US and encourage the Palestinians to negotiate.

Netanyahu is under internal pressure from coalition partners to end the slowdown when it expires in September and resume construction in Israel's West Bank settlements.

Also on the agenda during Tuesday's meeting will be Israel's continuing response to the international outcry that followed the bloodshed aboard an international protest ship that aimed to break the Israeli blockade of the Gaza Strip.

Under US pressure, Israel has agreed to ease the blockade to allow in more goods and construction materials — desperately needed to rebuild the war-torn area.