The Israeli cabinet was summoned Sunday by Prime Minister Benjamin Netanyahu to consult about the most recent round of direct peace talks with the Palestinian, reported Israeli media.

At the start of the meeting, Netanyahu said he still sees no solution to the dispute over resuming settlement-building in the West Bank once a 10-month moratorium ends Sep 26.

That issue of the moratorium is a major hurdle in peace negotiations between Israeli and Palestinian officials, which were launched in Washington Thursday. Palestinian negotiators have threatened to break off the talks if Israeli construction projects in the occupied territory begin anew.

On the other hand, right-wing members of Netanyahu's coalition have threatened to leave the government if the moratorium is extended.

US Secretary of State Hillary Rodham Clinton warned Friday that the peace talks could end unsuccessfully, noting that the ongoing talks might be the region's 'last chance'.

The next round of talks is set for Sep 14-15, somewhere in the region, possibly in the Egyptian resort town of Sharm el-Sheikh. Clinton and Washington's Middle East envoy George Mitchell are expected to attend.