The call to "give the US administration a one-month chance to seek the resumption of negotiations, including a halt to settlement" building, would be made in a resolution to be adopted later by the Arab League Followup Committee meeting in the Libyan coastal city of Sirte, the diplomat said.

Under the draft resolution, the committee for the peace process would hold another meeting within one month "to examine the policy alternatives if the diplomatic efforts fail," the official said on condition of anonymity.

The committee groups foreign ministers from 13 Arab countries.

Earlier Friday, Arab League Secretary-General Amr Moussa said talks between Israel and the Palestinians are not bearing fruit, but Arab leaders are not yet ready to recommend abandoning them.

"There are no talks at the moment because the position of the Israelis is very, very negative. They are not cooperating in the negotiations," Moussa said.

The committee would meet the Palestinian delegation but would not advise Palestinian President Mahmoud Abbas what he should do next, Moussa said.

Abbas spokesman Nabil Abu Rudainah said Abbas told US Secretary of State Hillary Clinton in a telephone conversation on Thursday that "Israel must fully stop settlement activities so that the peace process can succeed."

"The Americans told us that they are continuing with their efforts with the Israeli government. We are waiting to see the result of these efforts," Abu Rudainah added.