However Palestinians are not yet sure whether the United States will veto the resolution as part of its traditional support of Israel, the representative Riyad Mansour told AFP.

Mansour said he started meetings with Security Council ambassadors on Wednesday on the draft resolution drawn up with the backing of Arab states. Mansour and other Arab envoys met with Bosnian ambassador Ivan Barbalic, who is president of the Security Council for January.

"Now we are having talks about the drafting language," he said.

"There could be a vote on January 19, but it could be before, as early as next week, if countries are ready," he added. The UN Security Council is to debate the Middle East on January 19.

Palestinian president Mahmud Abbas has refused to take part in US-brokered talks with Israel since it ended a freeze on settlement building in the occupied territories at the end of September.

Despite international pressure Israel has refused to extend the freeze and insisted that the Palestinians should return to direct talks without conditions, that discuss the settlements and other key issues.

"The Palestinians, time and time again, during the last year have chosen to bypass this path and their attempts only move us further away from returning to the negotiation table and reaching a two-state solution," said Israeli mission spokeswoman Karean Peretz.

"We hope that the International Community won't allow these moves to divert both sides from reaching the real goal -- peace and stability in our region," she added.

The resolution would condemn Israel's settlement activities and reiterate an existing UN demand for all building work in the occupied territories to stop.

"We think that the resolution would bring us back to the path of talks," said the envoy. "We don't know what the Americans intend to do," he added.

The United States has traditionally vetoed resolutions that criticize Israel, including previous calls to end settlement building.