A meeting between Israeli Prime Minister Benjamin Netanyahu and the US Middle East envoy George Mitchell has been cancelled.
An Israeli newspaper says the United States put off the meeting in response to Mr Netanyahu's refusal to take any notice of US demands that Israel stop settlement construction.
Mr Netanyahu's aides say he cancelled the meeting.
In Cairo, Arab League Secretary General Amr Moussa said there would be a "big catastrophe" in the peace process if settlement activity did not stop.
