Palestinian Negotiator, Faruq Qaddumi: "The peace process is completely stalled"

They discussed an American proposal that Israel withdraw from a further 13% of the occupied West Bank.

Mr Ross held what he described as "productive" talks on Wednesday with the Palestinian leader, Yasser Arafat, who has already accepted the American proposal.

However Israel wants 3% of the land defined as a nature reserve and it also say there must be a new agreement on security co-operation before the withdrawal can go ahead.

"Dennis Ross Go Home": Some Israelis oppose visit

At the end of the talks with the Israeli prime minister, Mr Ross said only: "They were useful."

Mr Netanyahu, who is suffering from influenza, did not emerge from his home after the talks. Political sources said the two men met alone during most of the 45 minutes.

Mr Ross is on his first mission since May to try to break the 18-month deadlock in the Israeli-Palestinian peace process.

American officials have described the visit as open-ended and say it may be extended if progress is being made towards a deal on an Israeli withdrawal from the West Bank.

Chief Palestinian negotiator Saeb Erekat, who attended the meeting between Mr Arafat and the US envoy, rejected any changes to the plan.

"We will not allow the fragmentation of the American initiative. To try to fragment the 13% and to try to create new areas will only complicate matters," he said.

Ready to do a deal

Next week sees the fifth anniversary of the historic agreement signed on the White House lawn by the Palestinian leader, Yasser Arafat, and the then Israeli Prime Minister, Yitzhak Rabin.

There are signs that Israel may agree to West bank withdrawals

The BBC's Middle East analyst Roger Hardy says many Israeli commentators seem to think Mr Netanyahu is ready to cut a deal, believing that he will not face serious opposition from within his coalition of religious parties and right-wing nationalists.

Meanwhile Israeli Cabinet Secretary Danny Naveh has said that Mr Netanyahu is "doing his best to reach an agreement between Israel and the Palestinians."

Speaking in Egypt after a meeting with President Hosni Mubarak, he said Israel wants to restart negotiations with Mr Arafat.

But Mr Mubarak's chief political adviser Osama el-Baz was more sceptical. He told reporters: "The situation, until now, does not show that tangible progress has been made."