Israel is to reply on Saturday to a letter from Mahmud Abbas voicing the Palestinian president's grievances over the failed peace process, a senior Palestinian official said.

The message from Israeli Prime Minister Benjamin Netanyahu would be delivered by his chief negotiator Yitzhak Molcho to Abbas at his headquarters in the West Bank city of Ramallah, the official said Friday on condition of anonymity.

An Israeli official questioned by AFP said he was "not aware" of such a move.

On April 17, Abbas sent Netanyahu a letter which Palestinian negotiator Nabil Shaath said was meant to challenge the Israeli leader over the collapse of the peace process and "put Mr Netanyahu on the spot."

Netanyahu was to have responded within two weeks, but has been occupied with domestic political events and the death of his father.

In his letter, Abbas asked Israel to outline "as soon as possible" its positions on four key issues: the principle of a two-state solution based on the pre-1967 lines, halting settlement activity, releasing all Palestinian prisoners, and revoking all decisions which undermine bilateral agreements since 2000.

"We stand ready to immediately resume negotiations the minute we receive your positive response on these points," he wrote.

Israel says it wants negotiations without preconditions.

Netanyahu's office says that in his response to Abbas he will offer to raise the level of contacts with the Palestinians to that of direct talks between the leaders.

In January, negotiators from both sides held five exploratory meetings in a bid to find a way to resume dialogue, but they ended inconclusively.

Senior Palestinian negotiator Saeb Erika has already warned that in the absence of a favourable response from Netanyahu, Abbas will renew his campaign for United Nations membership for a Palestinian state "in the General Assembly, in the Security Council and in all other UN bodies.