JERUSALEM, Sept. 14 (Xinhua) -- Israeli Prime Minister Benjamin Netanyahu Monday said his country is not to freeze settlement construction completely and permanently, local daily The Jerusalem Post reported.

    Speaking at a session of the parliament's Foreign Affairs and Defense Committee, Netanyahu was quoted as saying that "a reduction on building" in the West Bank "will only be for a limited period," whose duration is yet to be negotiated with the United States.

    "The Palestinians expected a complete settlement freeze, and now it's clear that this won't happen," the premier added.

    He said "We are balancing both the will to make a gesture in order to re-launch the peace process and the need to let Judea and Samaria (the West Bank) residents live a normal life, and also to continue building public structures."

    The Israeli prime minister is expected to meet Tuesday with visiting U.S. peace envoy to the Middle East George Mitchell, who arrived in Israel on Saturday night in a fresh push of stalled Israeli-Palestinian peace talks.

    Netanyahu also said his government will not halt construction in Jerusalem, whose status is another key issue in the decades-old conflict. The Jewish state captured East Jerusalem in 1967, while the Palestinians want the section of the holy city as capital of their future state.

    Efforts to resume the stalled peace process have been heating up as clock is ticking down toward the UN General Assembly later this month, when U.S. President Barack Obama is expected to convene a tripartite summit with Israeli and Palestinian leaders and officially announce the resumption of peace talks.

    However, notable gaps remain between the parties. Netanyahu has so far resisted a U.S. demand for a total freeze of settlement construction in the West Bank and East Jerusalem for a year, while the Palestinians vowed not to return to the negotiating table until Israel completely halts its settlement activities.

    The premier has said Israel is nearing a deal with the United State, its top ally, over the settlement issue, and local media speculates that the two would agree to a moratorium for about ninth months during Mitchell's current visit.

Special Report: Palestine-Israel Conflicts