Source: no sign of solution to negotiations

"Settlement activity is a strategic obstacle that threatens the failure of negotiations," the source said.
 
"There was no agreement on anything, and despite all American efforts regarding the prisoners no agreement was not reached," the source added.
 
He denied claims of the possibility of exiling Palestinian prisoners as part of a deal to secure their release.
 
Saudi news website Al-Arabiya, however, quoted an unnamed source as saying that a deal had been reached to extend talks beyond the deadline.
 
The unnamed source was quoted as saying that the agreement involved an "unspecified number of Palestinian prisoners released from Israel jails and a freeze on settlement construction in the West Bank."
 
"In exchange, the Palestinians will suspend their plans to join 15 international bodies and treaties and the United States will release jailed Israeli spy Jonathan Pollard," the report continued.
 
The conflicting reports come amid a growing crisis in the peace negotiations between Israel and the Palestine Liberation Organization.
 
On Wednesday, Netanyahu called for an end to coordination with Palestinian officials after the PLO decided to apply to join 15 international conventions.
 
Palestinian officials say the decision to apply to the international conventions was in direct response to Israel's failure to release a fourth and final round of veteran prisoners as agreed.
 
Peace talks between Israelis and Palestinians were relaunched in July under the auspices of the US after nearly three years of impasse.
 
Israel's government has announced the construction of thousands of settler housing units and its army has killed 60 Palestinians in the West Bank and Gaza since the negotiations began.