A principal focus of the discussions was specific measures that could have a meaningful impact on the economic environment in the West Bank and Gaza, allowing the Palestinians to more fully realise their economic potential, it said.
While the American delegation was led by Jason Greenblatt, President Donald Trump's Special Representative for International Negotiations, the Israeli delegation was led by the Chief of Staff to Israeli Prime Minister Benjamin Netanyahu, Yoav Horowitz.
The two delegations also discussed Israeli settlement construction, following up on Prime Minister Netanyahu's visit to Washington and Greenblatt's recent visit to Israel.
The US reiterated Trump's concerns regarding settlement activity in the context of moving towards a peace agreement.
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The Israeli delegation made clear that Israel's intent is to adopt a policy regarding settlement activity that takes those concerns into consideration.
He is known for his hardline views and has been critical of a two-State solution to the Israel-Palestine conflict.