The Palestine Liberation Organisation (PLO) decided Wednesday not to extend the current US-mediated peace talks with Israel, that are set to end in April.
"Our decision goes in line with the popular desire not to extend the peace talks," Xinhua quoted the PLO's executive committee as saying in a press statement after its meeting in Ramallah, adding that it will not accept any peace plans that ignore resolutions of international legitimacy and the Arab peace initiative.
"We cannot replace these term of references of the peace process with new ones that serve the settlement expansion and deny that East Jerusalem is part of the territories occupied in 1967."
The committee also called for Arab and international pressure to ensure a complete halt of Israeli settlement activities on the Palestinian territories.
The Palestinian decision comes ahead of next week's meeting in Washington between Palestinian President Mahmoud Abbas and US President Barack Obama to discuss peace talks with Israel.
The meeting is expected to get the Palestinians and Israel to agree on a framework plan for peace.
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The US has been working since last July to bridge the gap between the Palestinians and Israel, hoping to make them agree on a framework plan for peace to end their prolonged conflict.
The plan is expected to reach a deal on all final status issues, including the future Palestinian state's borders, Palestinian refugees, security, and the status of Jerusalem which both Israel and the Palestinians have claimed as their capital.