Expressing severe discontent over the continuing settlement activity, the president of the Palestinian Authority (PA), Mahmoud Abbas, stated that he might dissolve PA if a peace deal cannot be reached with Israel.

In a television interview on Friday, Abbas stated that he 'cannot accept to remain the president of an authority that doesn't exist'.

Responding to a question by the presenter on whether this means dissolving the governing body he said, I am telling them so. I say to them... Welcome ... you are occupiers. You are here, stay here, I cannot accept the situation will remain as is.

The PA, which was created after the Oslo peace accords in 1993, has engaged Israel in a series of peace talks. Fresh talks between both sides, brokered by the U.S, began in early September this year. However, they were stalled last month despite Washington proposing a renewed moratorium over settlement activity. Israel rejected the proposal last week even as United States offered to give Tel Aviv 20 F-35 fighters and veto any UN resolutions against Israel's war on Gaza in 2008 and raid on Flotilla earlier in May this year.   

US urged Israel to reinstate a moratorium on West Bank settlement building and excluded a suspension of settlement activity in East Jerusalem. Washington also agreed that it would not ask Israel for any further settlement freeze if this proposal is agreed upon.

Right-wing leaders in Israel pressurized Prime Minister Benjamin Netanyahu to refuse the proposal. Several religious leaders also stood up in protest of the Israeli's government attempts to consider the freeze.