The Palestinian leader, Mr Yasser Arafat and the Israeli Prime Minister, Mr Ehud Barak, held talks in the West Bank town of Ramallah yesterday, an Arafat adviser said.
In their 2 1/2 hour late night meeting, Mr Arafat and Mr Barak discussed "all the topics, including the final status" of the Palestinian territories, the adviser said.
"It was decided abreast of (the negotiations) through meetings" and "to work seriously in order to reach an accord at the earliest" opportunity.
"A lot of work is needed to overcome the obstacles to the Israeli-Palestinian talks," he added.
The meeting took place at the home of the second-in-command of the Palestine Liberation Organisation, Mr Abu Mazen, who took part in the talks as did legislative council speaker Mr Ahmed Korei, the adviser said.
Mr Barak was accompanied by his security adviser, Mr Danny Yatom, and the Foreign Minister Mr David Levy, Israeli radio and television said.
Earlier, a spokesman for the US embassy said the US special envoy Mr Dennis Ross had met Mr Barak yesterday afternoon.
Mr Ross also held separate talks with the chief Palestinian negotiators Mr Yasser Abed Rabbo and Mr Saeb Erakat and the Israeli chief negotiator, Mr Oded Eran.
According to the Palestinians, the negotiating session that ended on Friday was held in a climate of crisis and no progress was made towards a framework agreement, due to be reached by mid-May.
The two sides are also discussing the extent of the third Israeli military pullout from the West Bank in line with the Oslo accords.
Mr Ross is expected to stay in the region until tomorrow and then return next week for another round of Israeli-Palestinian negotiations.