The US has denied a report that it gave Israel permission to expand West Bank settlements before a final peace deal with the Palestinians.

 

Ehud Olmert, the Israeli prime minister, said that George Bush, the US president, had given Ariel Sharon, Olmert's predecessor, a letter giving the green light on expansions, the Washington Post reported.

But Sean McCormack, the US state department spokesman, denied that the story was true on Thursday.

 

Under the 2003 road map peace deal drafted by the US and its key partners, Israel is required to freeze settlement building and the Palestinians must end attacks.

The newspaper quotes Israeli officials as saying that they have clear guidance from Bush administration officials to continue building settlements under certain criteria.

 

Rice approval

 

Dov Weisglass, Sharon's chief of staff, said Condoleezza Rice, the US secretary of state, reaffirmed the understanding in a secret deal reached in 2005 before Israel withdrew it settlements from the Gaza Strip, the newspaper reported.

 

McCormack said both sides in the conflict were aware of the US position on their responsibilities.

 

"And we've also made clear over and over again that any lines that are drawn by both sides need to be negotiated by both sides and any deviation from the ... known lines are going to have to be negotiated," he said.

 

During a visit to Washington this week, Mahmoud Abbas, the Palestinian president, told Rice that continued Israeli settlements in the West Bank "are still the main obstacle" to the peace process.

 

The West Bank has been under military occupation by Israel since 1967 and at least 400,000 Israelis have been settled in the territory, including East Jerusalem.

 

The settlements are illegal under international law, although Israel disputes this.