The brokering of a peace deal between Israel and Palestine could be a possibility by the end of this year, US Secretary of State Condoleezza Rice has said.
Ms Rice visited the region partly to pave way for President Bush's trip to the troubled area later this month.
During her visit, she described Israeli settlement activity in the West Bank as "problematic".
Israeli Foreign Minister Tzipi Livni said Israel would adhere to its peace process commitments, and that no new settlements were being built.
The current peace process, launched at a Middle East conference hosted by Mr Bush in November, has been dogged by a lack of progress.
During a joint news conference, Ms Rice said she continued "to raise with the Israelis the importance of creating an atmosphere that is conducive to negotiations".
Ms Livni told the news conference: "There is no new building of new settlements", adding that her government had "no hidden agenda".
She pointed to Israel's 2005 withdrawal from Gaza Strip as proof that Jewish settlements were "not obstacles" to peace.
Ms Rice is due to have talks on Monday with Israeli Prime Minister Ehud Olmert.