US Secretary of State John Kerry said Friday that he remained "hopeful" that Israel and the Palestinians could achieve a deal in the short term, Israel's Ha'aretz daily reported.
"I am a believer in the possibility. We could achieve something, but it will be very, very difficult," Kerry told a delegation of students from the American Jewish Committee, a Jewish advocacy organisation, in Jerusalem, Xinhua reported.
"Both leaders recognize the consequences of failure," he added.
Kerry arrived in Jerusalem Thursday for another round of his intensive shuttle diplomacy.
Earlier Friday, Kerry met for three hours with Israeli Prime Minister Benjamin Netanyahu. It was their second meeting in current visit. Israel's chief negotiator and Justice Minister Tzipi Livni and Defence Minister Moshe Ya'alon also attended the meeting.
