2. No promise on settlement freeze

In contrast with his clearly defined requirements for a future Palestinian state, Netanyahu's plan of action on the thorny settlement issue remains in the dark.

Since U.S. Secretary of State Hillary Clinton announced the Washington meeting two weeks ago, the Israeli prime minister has made no clear-cut statement on whether to extend his government's partial suspension order on settlement construction in the West Bank, which expires on Sept. 26.

Netanyahu said in the past that the moratorium was for a defined period of 10 months and construction would resume in full afterward. On Sunday, he reportedly told ministers from his right-wing Likud party he had not made any promise to any U.S. official to extend the partial construction freeze.

Netanyahu's ambiguity has created tensions inside his right wing-dominated ruling coalition, as some hardliners have already begun pressuring him not to extend the moratorium.

Despite the pressure, sources close to Netanyahu told Xinhua an extension would win a majority within the political-security cabinet, a powerful narrow forum designated to outline Israel's foreign and defense policies. The premier would not ask the approval of the whole cabinet in order to forestall bitter sparring.

Meanwhile, Netanyahu's spokesmen recently said the issue would be discussed during the U.S.-brokered negotiations. The United States is Israel's most important ally, and President Barack Obama has put high stakes on the renewed talks.

3. Offer goodwill gestures to offset settlement disputes

In a bid to placate Palestinians infuriated by Israel's continuous settlement construction, Netanyahu is set to offer Abbas several "goodwill gestures," political sources said Sunday.

Among the offers under consideration are releasing some Palestinians jailed in Israel, removing some military checkpoints in the West Bank, and relaxing the traffic limitations on Palestinian residents and goods.

Netanyahu has stressed these gestures would be made only when Israel sees the Palestinians are "serious in their intentions to advance through the (peace) process." The goodwill gestures are seen as a potential "creative solution" to the settlement construction dilemma that is threatening to derail the peace talks.