Just as Israel's 10-month moratorium on Jewish settlements construction in the West Bank expired on Sunday midnight, Israeli Prime Minister Benjamin Netanyahu called on Palestinian President Mahmoud Abbas to remain in the peace talks.

In a statement, Netanyahu urged Abbas "to continue the good and honest talks we have just now started in order to reach a historic peace agreement between our two peoples."

Settlement construction has been the main obstacle to the Israeli-Palestinian direct talks, which were re-launched earlier in the month. The Palestinians have vowed to quit the negotiations if Israel resumed its construction in the West Bank.

The Israeli Prime Minister's Office has not revealed if Netanyahu will extend the freeze, or, if so, to what extent, after the 10-month moratorium expired.

However, Netanyahu suggested in the statement that the parties will continue seeking a solution to maintain the peace talks in the following days.

"Israel is ready to pursue continuous contacts in the coming days to find a way to continue the peace talks," local daily Ha'aretz quoted the statement as saying.

Meanwhile, sources close to the Israeli government told Xinhua early Monday that Netanyahu is considering three options to substitute for the moratorium and keep the direct talks with the Palestinians on track.

According to the source, Netanyahu and his ministers estimate that the Israeli government and the Palestinian National Authority (PNA) could possibly reach a compromise on the settlement freeze before Oct. 4, when the Arab League's monitoring committee will convene to decide whether the direct peace talks should continue after the settlement freeze is over.

Israeli officials are now discussing three potential formulas with the United States as well as the PNA, but no agreement has been reached so far.

The first one weighed is resuming the construction of structures which have already been approved before announcing another moratorium for several months.

There are an estimated 1,500 to 2,500 structures whose construction will be approved. It is an offer which sources estimate the Palestinians may agree to, but is regarded unacceptable by Israel, since its implication will be "life coming to a halt" in the West Bank and will prevent any possible construction.