Kerry was expected to travel to the West Bank town of Ramallah last night to meet Palestinian Authority (PA) President Mahmoud Abbas but is said to have dropped the plan due to long intensive discussions with Netanyahu.
He is expected to be back in the region to push both sides to resolve a lingering dispute over Palestinian prisoners and continue negotiations till the end of 2014, beyond the agreed nine-month deadline ending on April 29.
Erekat said without the release of the fourth group of prisoners, which includes 14 Israeli Arabs, the Palestinians will not agree to discuss the extension of the talks.
He stressed that the Palestinian leadership has decided that if Israel won't go ahead with the fourth stage of prisoner release, PA will immediately turn to the United Nations seeking recognition.
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As the talks appeared on the brink of collapse, media reports said the US may release Jewish spy Jonathan Pollard as part of a wider package designed to resuscitate the faltering negotiations.
"The key would be a big US concession for a big Israeli concession," the American official reportedly said.
Pollard, an American Jew, was a civilian intelligence analyst for the US Navy when he gave thousands of classified documents to his Israeli handlers almost three decades ago.
Israel recruited him to pass along US secrets, including satellite photos and data on Soviet weaponry in the 1980s.
Israel would release about 400 low-profile Palestinian prisoners besides the 26 high profile prisoners, 14 of whom are Israeli Arabs, as part of the deal, the daily said.
It would also put an unofficial freeze on most settlement construction outside of East Jerusalem for the next eight months, the report said.
Israel would not formally freeze construction nor would it publish bans on construction as it did in 2009 but the Israeli defence minister, who is the authority in charge of the West Bank, would halt government tenders, marketing of lands and planning.