The Israeli Prime Minister, Mr Ariel Sharon, has rejected his Palestinian counterpart's demand that Israel stop building a controversial wall through Palestinian territory as a condition for peace talks.
However, a US envoy, trying to revive a stalled peace "road map", said he was hopeful a meeting could still be fixed between Mr Sharon and Palestinian Prime Minister Ahmed Qurie, and he urged both sides to keep the promises they had already made.
Described by the Israelis as a fence to keep out suicide bombers and by the Palestinians as a wall to annex land, the controversial barrier of concrete and razor wire cuts deep into territory occupied by Israel in 1967.
"I hereby notify you that no condition shall be accepted . . . regarding the cessation of the fence, dismantling of the fence and other fabrications," Mr Sharon was quoted as saying in the official report on Sunday's cabinet meeting.
His cabinet chief later met Palestinian officials to prepare for a meeting of the two, but a statement said they had decided "to meet again soon to continue preparations".
Mr Qurie urged the United States to press Israel to halt work on the barrier as he met State Department envoy William Burns.
The US-backed road map peace plan has been stalled since a one-sided truce by Palestinian militants collapsed in August.
Mr Burns, on a visit that has signalled renewed US interest, said Israel should remove settler outposts while the Palestinians deal with militant groups under the peace plan that envisages a Palestinian state by 2005.
Mr Sharon has said he is committed to the plan, but that if it fails Israel could unilaterally set borders for a Palestinian state then leave isolated Jewish settlements.
