US Secretary of State Condoleezza Rice has met Israeli Prime Minister Ehud Olmert ahead of three-way talks aimed at a Mid-East peace agreement.
The visit is her seventh to the region since the Annapolis meeting where the Israelis and Palestinians agreed to push for a deal by the end of 2008.
Ms Rice has played down the possibility that details of an interim agreement might be published next month.
She said the talks were "intensive" amid heavy doubts a deal can be agreed.
Ms Rice is due to hold three-way talks with Israeli Foreign Minister Tzipi Livni and the chief Palestinian negotiator, Ahmed Qurei, as well as meeting Palestinian President Mahmoud Abbas in the West Bank town of Ramallah.
Ms Livni, a favourite to replace scandal-hit Mr Olmert, has warned against rushing the process, saying attempts to "bridge gaps prematurely" can lead to misunderstandings and violent clashes.
Ms Rice said ahead of the talks that she was "very heartened" by the fact that the negotiations were "serious" and "intensive".
In a joint press conference with Ms Livni, she reiterated the US position that Israeli settlement activity is "not helpful" to the peace process.
A report by the Israeli pressure group Peace Now released on Tuesday said construction in settlements had nearly doubled in the first half of this year, in comparison to the same period in 2007.
Ms Livni said settlement work was limited to "small activities" which would not influence the negotiations or borders of a future Palestinian state.
Relations between Israel and the Palestinians have been strained in recent months and both have internal issues.
The Israeli leadership is in flux: Prime Minister Ehud Olmert has said he will step down after new internal party elections.
And the Palestinians remain divided between those in charge of the West Bank, with whom the Israelis are talking, and the rival Islamist Hamas faction, in control of the Gaza Strip.
Ms Rice's visit has coincided with the release of 198 Palestinian prisoners in what Israel called a goodwill gesture to Palestinian leader Mahmoud Abbas.
Ms Rice welcomed news of the prisoner release as "a very good step".
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