Washington (CNN) -- The United States is scrambling to find a way to save the Middle East peace talks before an Arab League meeting in Libya this weekend.
U.S., Israeli, Palestinian and Arab sources say intensive negotiations continue between the United States and Israel to find a formula on Israel's construction of new settlements that will keep Palestinian President Mahmoud Abbas at the peace talks.
The sources said the Obama administration has floated a possible set of assurances the United States could offer if Israeli Prime Minister Benjamin Netanyahu agreed to extend a freeze on new settlements, but the prime minister has so far rejected it.
"Neither side trusts the other side, and neither side is convinced they understand what the other's bottom line is," one senior U.S. official said.
Abbas has threatened to walk out of talks without an extension of the settlement moratorium, which expired last week, but has delayed a decision until an emergency meeting of the Arab League this weekend in Libya. The senior U.S. official called the delay "very valuable".
"We have bought ourselves a little time" the official said.
U.S. and Israeli officials said a number of possible formulas are being discussed with Netanyahu, including a two-month extension of the settlement freeze and a strict limit on settlement construction while peace talks continue. Secretary of State Hillary Clinton spoke to Netanyahu on Sunday, the fifth time in the past week.
CNN
