Netanyahu meets Obama in Washington

The talks centred on the plan for 1,600 homes in east Jerusalem, the announcement of which caused widespread Palestinian rioting in Jerusalem and a freeze on indirect peace talks.

White House spokesman Robert Gibbs said Mr Obama had urged Mr Netanyahu to make the first move and build confidence in the possibility of new talks with the Palestinians. Mr Netanyahu also reiterated that he will not cancel the plans to build in Ramat Shlomo, east Jerusalem.

Haaretz reported that the two men had not even been able to agree on a joint statement.

After the talks ended, Israeli political advisors Yitzhak Molcho, Ron Dermer and Nir Chefetz, and Israeli Ambassador to the US Michael Oren continued talks with Mr Obama's aides, not leaving the White House until 2am.

President Obama had made clear how angry he was about the timing of the Israeli announcement but reiterated his support for Israel in a TV interview.

Mr Obama said: "Israel's one of our closest allies, and we and the Israeli people have a special bond that's not going to go away. But friends are going to disagree sometimes.”