the US Secretary of State has reportedly announced that Israel and the Palestinians have reached an agreement which establishes the basis for resuming peace talks.
The last round of direct talks broke down between the two countries nearly three years ago over the issue of Israeli settlements in the West Bank and East Jerusalem, the BBC reports.
According to the report, Palestinian officials have clarified that the negotiations on borders would be based on pre-1967 ceasefire commitments.
The European Union's approval to new guidelines which prevent Israeli projects in occupied territories from receiving European grants or prize money has aroused aggressive reactions.
The future status of Jerusalem and any right of return for Palestinian refugees and their descendents are also core issues in any future peace talks, the report added.
Hamas, Islamist group that rules in Gaza, has rejected the announcement of a return to talks, and have said that President Mahmoud Abbas has no right to negotiate on behalf of the Palestinian people.