A Palestinian official criticized on Monday the U.S. administration over "the unprecedented guarantees" it offered to Israel in exchange to extend settlement freeze for another two months.

"Settlement activity is an illegal act and the U.S. should compel Israel to halt construction instead of offering guarantees to suspend the building work," Hanan Ashrawi, a member of the Palestine Liberation Organization (PLO)'s executive committee, told Voice of Palestine radio.

According to media reports, U.S. President Barack Obama offered Israeli Prime Minister Benjamin Netanyahu a list of security and political guarantees in trade for extending a previous decision of settlement freeze, though the offer was rebuffed by Netanyahu.

Ashrawi said the Palestinians cannot accept temporary freeze of settlement construction, adding what the Palestinians need to resume direct talks is a full settlement freeze.

The Palestinian leadership decided on Saturday not to continue direct peace talks with Israel unless the latter stops building works in Jewish settlements in the West Bank and Jerusalem.