Labor MK Isaac Herzog met with Palestinian Authority Prime Minister Salam Fayyad in Ramallah on Monday and warned that the collapse of the PA would be "catastrophic" for Israel.

Fayyad told Herzog that Israel's continual withholding of tax revenues to the PA and the failure of donor states to transfer promised aid to the West Bank had the Palestinian Authority  on the brink of collapse.

"We are in danger of falling apart if you in Israel do not straighten up and understand that it's impossible to leave us waiting [for tax funds] each and every month," Fayyad said in the meeting with Herzog.

Herzog stated that the collapse of the PA could not be allowed, saying that it would mean that "the IDF would have to go back to taking responsibility over West Bank cities."

The Labor party number two, who was the first Israeli MK to meet with Fayyad since the January 22 Knesset election, called the government of Fayyad, and PA President Mahmoud Abbas, Israel's only partner for a peace process with Palestinians. He called on Israel to make the "utmost effort" to resume negotiations and to strengthen the hand of those among the Palestinians who seek peace.

Herzog said of a peace agreement that "despite the fact that it seems far away, it is possible, and the next prime minister has the responsibility to make an effort in this direction."