U.S. President Barack Obama has praised Israeli Prime Minister Benjamin Netanyahu for urging his cabinet to accept a U.S. proposal to extend a freeze on West Bank settlement building for 90 days.
Peace talks with the Palestinians broke down in September when the moratorium expired.
Under the plan, Washington would block UN resolutions critical of Israel, and supply Israel with fighter jets worth $3 billion.
Also, Washington would not ask Israel again to renew the moratorium. The cabinet is expected to approve the U.S. proposal later this week.