US Secretary of State Hillary Clinton says she expects indirect peace talks between Israel and the Palestinians to resume next week.
Mrs Clinton says US special envoy George Mitchell will return to the Middle East.
Israeli-Palestinian peace talks have been stalled since 2008.
Mrs Clinton expects Israel to halt settlement building on occupied land and is urging Arab nations to do more to back peace efforts.
Israeli officials have not publicly commented on Mrs Clinton's remarks.
The United States has been struggling to get the talks underway. They were further stalled by an announcement in March that Israel had approved plans for new homes in East Jerusalem.
The BBC reports Israel has occupied the West Bank, including East Jerusalem, since 1967.
Nearly half a million Jews live in more than 100 settlements in the West Bank. The settlements are illegal under international law.