Israel sought on Tuesday to ease up a strained relationship with the United States by welcoming U.S. Secretary of State Hillary Clinton's comment about the two nations' "close bond."

"The State of Israel appreciates and respects the warm words said by Secretary of State Hillary Clinton regarding the deep bond between the U.S. and Israel, and on the U.S. commitment to Israel' s security," Israeli Prime Minister Benjamin Netanyahu's office said in a statement.

Clinton earlier this day denied that the U.S. and Israel are in a diplomatic "crisis." Instead, she reiterated the commitment of her nation to Israel's security, stressing a "close, unshakable bond" between the two traditional allies.

In her remarks, Clinton once again urged Israeli government to take concrete steps to push forward the Israeli-Palestinian peace process.

With regard to this, the Israeli government's statement said the Jewish state "has proven over last year that it is committed to peace, both in words and actions."

The U.S. and Israel are apparently in an attempt to repair the damage from a diplomatic row, which triggered by Israeli government's approval of a 1,600 housing units plan in East Jerusalem during U.S. Vice President Joe Biden's visit last week.

Israel's move threatened to torpedo the newly resumed Israeli- Palestinian indirect talks, and embarrassed peace efforts of the U. S., who has been bombarding the Jewish state with harsh criticism since then.

Amid the simmering tension, U.S. special envoy to Middle East George Mitchell, broker of the proximity talks, on Tuesday postponed his visit to the region.

Despite repeated request from the U.S. that Israel cancel the building project, Netanyahu gave a strong indication on Monday that he would not halt building activity in the Jewish neighborhoods of East Jerusalem.