US Secretary of State John Kerry said the sides had set a goal for a nine-month deadline for reaching a pact.
Speaking as the two sides wrapped up an initial round of talks in Washington, Mr Kerry said they were committed to "sustained, continuous and substantive negotiations on the core issues" that divided them. He said the next round of negotiations would take place in either Israel or the Palestinian territories.
Mr Kerry was flanked by the parties' lead negotiators who each spoke briefly about the need to resolve the long-standing conflict.
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