The New Nation - Internet Edition

AFP, Sharm El-Sheikh

The Middle East Quartet on Sunday hailed "substantial" progress in Israeli-Palestinian peace talks but called for a halt to Jewish settlement activity, according to a draft statement.

The Quartet-which groups the European Union, Russia, the United Nations and the United States, was meeting in Egypt on Sunday to take stock of the negotiations, with no sign that a long-elusive deal will be reached this year.

According to the draft statement seen by AFP, the Quartet says there has been "substantial" political progress in the negotiations, but also urges a freeze in Jewish settlement construction on occupied Palestinian land.

The gathering in the Red Sea resort of Sharm el-Sheikh comes a year after the peace process was relaunched at a US-sponsored conference following a near seven-year break.

Outgoing US President George W. Bush had hoped to see a deal before he leaves office in January, but all players have made clear that no major breakthrough is in sight.