Washington - The United States denied Wednesday that it has reached a compromise that would allow Israel to complete construction of settlements that has already begun. The purported deal reported by the Israeli newspaper Ma'ariv said Israel could finish the 700 buildings containing some 2,500 settlement apartments.
But US State Department spokesman Ian Kelly said the report was "inaccurate" and that Washington stood by its position that all settlement activity must end as outlined in the peace process with Palestinians.
"This activity has to stop. This is laid out in the road map" peace plan, Kelly said. "So the reports are inaccurate."
Israeli plans to build more settlements has frustrated Washington, which sees them as an obstacle to restarting peace negotiations with the Palestinians.
Ma'ariv reported the compromise was reached during a meeting in London on Monday between Israeli Defence Minister Ehud Barak and US President Barack Obama's special envoy to the Middle East, George Mitchell.
Obama has repeatedly called on Israeli Prime Minister Benjamin Netanyahu to stop building settlements.
"Our bottom line is the same. It has not changed," Kelly said. "And that's that all parties in the region have to honour their obligations."
Mitchell is to meet with Netanyahu in Israel next week.