WASHINGTON - PRESIDENT Barack Obama held talks on Monday with Israeli Prime Minister Benjamin Netanyahu, giving his visit an unusually low profile as US efforts to revive Israeli-Palestinian peace talks remain stalemated.

Mr Netanyahu, who began the day by publicly urging Palestinian President Mahmoud Abbas to negotiate immediately and drop a demand to halt Jewish settlement construction first, arrived at the White House after dark.

Contrary to normal practice with a visiting Israeli prime minister, reporters were not allowed in the Oval Office.

A senior Israeli official saidn Mr Netanyahu planned to tell Mr Obama that 'we mean business' and Israel was willing to be 'generous in restraining' building in settlements in the West Bank to get peace talks started again.

Western-backed Abbas, who has threatened not to run in Palestinian elections in January, has accused Washington of failing to press Israel strongly enough on settlements - enclaves Palestinians fear will deny them a viable state.

Saying 'no Israeli government has been so willing to restrain settlement activity,' Mr Netanyahu told a conference of American Jewish leaders: 'I say today to Abbas ... let us seize the moment to reach a historic agreement. Let us begin talks immediately.' -- REUTERS