Senior Palestinian politicians have backed President Mahmud Abbas's demand to link peace talks to restrictions on Israeli settlement building.
The announcement came after a meeting of dozens of leaders of the Palestine Liberation Organization and Abbas's Fatah movement.
However, a final decision is only expected at an Arab League summit in Libya next weekend.
The development delivers a new setback to U.S. efforts to salvage Israeli-Palestinian peace negotiations.
Israeli Prime Minister Binyamin Netanyahu, who is adamant about not extending a moratorium on settlement building, said in a statement earlier in the day that peace can only be achieved in negotiations and urged the Palestinians to continue talks.
compiled from agency reports