The US envoy Dennis Ross faces an uphill struggle after a day of meetings with Israeli and Palestinian leaders aimed at paving the way for US President Bill Clinton's personal intervention in the Middle East peace process.

Mr Ross is pushing a US plan to bring the two sides into negotiations for a final peace accord.

He met Israeli Prime Minister Benjamin Netanyahu in Jerusalem, then went to the West Bank town of Bethlehem for talks with Palestinian leader Yasser Arafat.

"I'm out here to work on the process, to work with both sides to try to find ways to move forward in advance of the meetings that will take place in Washington," Mr Ross told reporters.

But the divide over ceding West Bank land to the PLO remains as wide as ever.

Mr Arafat told the envoy that Israel had "no more excuses" for delaying troop withdrawals agreed in the Oslo Peace Accords.

Netanyahu faces difficult weeks ahead

Mr Netanyahu told the BBC: "It's not possible for the United States to come to Israel and say, 'Ah, but you should fulfil more things when [the Palestinians] haven't fulfilled any of the things that they've done.

"It really boils down to this - if they carry out their obligations, then it's possible for us and we intend to carry out our obligations."

The United States reportedly expects Mr Netanyahu to present President Clinton with concrete plans for a pullout adding at least 10% of the West Bank to the 27% in which the Palestinians now have autonomy.

But the PLO leader, Yasser Arafat, wants to see even more substantial movement.

Mr Netanyahu said he was prepared to go ahead with the long-delayed redeployment, but only if the Palestinians would implement measures designed to guarantee Israel's security.

Former Foreign Minister David Levy, who resigned on Sunday

Both sides may be disappointed.

Mr Netanyahu's options are limited.

The leading proponent of peace in his Cabinet, Foreign Minister David Levy, resigned on Sunday, and his fractious coalition, which includes both opponents and proponents of the peace process, now rests on a minimal majority of 61 out of 120 members.

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