The Palestinian leadership has made it clear in recent weeks that they would quit the talks if Israeli West Bank construction activity resumes.

In an attempt to find a solution to the construction freeze issue, Netanyahu is planning to offer the Palestinians generous gestures in exchange for their agreement to proceed with the peace talks while allowing Israel to continue building, local daily Ma' ariv reported on Sunday.

According to the report, Israeli Ambassador to the U.S. Michael Oren told Jewish leaders in a video conference on Friday that Netanyahu is set to offer Abbas several perks, including the release of hundreds of Palestinians jailed in Israel, cancelling army checkpoints in the West Bank and full Palestinian control of a road that will link Ramallah with Rawabi, a new Palestinian town now under construction.

"We know Abbas' position can be unstable at times, and we're trying to find ways to keep him at the negotiation table," Oren was quoted as saying.

"After we pass this hurdle, we'll be able to quickly proceed towards attaining a historical framework agreement," he said.

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