(CNN) -- U.S. Secretary of State Hillary Clinton has proposed a three-month extension of Israel's construction moratorium on the West Bank, a diplomatic source told CNN Thursday.
The proposal, which was made this week during Middle East peace talks being held in the region, was accepted by Palestinian Authority President Mahmoud Abbas, but essentially rejected by Israeli Prime Minister Benjamin Netanyahu.
The two sides appear to be at a stalemate, the source said.
Netanyahu's official position remains that he will not support any extension of the moratorium, which has been in place for 10 months and is set to expire September 26.
The U.S. special envoy to the region, former Sen. George Mitchell, is attempting to negotiate a "quid pro quo" from the Palestinians in exchange for an extension, the source added.
CNN
