There is no indication that the Palestinians have pulled out of indirect talks with Israel, said the U.S. State Department on Thursday, adding that the United States remains committed to the Middle East peace process.

"As far as I know, we are still moving forward. We have not heard from the Palestinians that they have pulled out," said State Department spokesman Philip Crowley, referring to a report saying that the Palestinians have refused to resume indirect talks with Israel.

Palestinian National Authority (PNA) Chairman Mahmoud Abbas told Arab League Secretary-general Amr Moussa on Wednesday night that the Palestinians will not engage in any talks with Israel under the current situation, the official MENA news agency reported.

The Israeli government approved on Tuesday the construction of 1,600 new housing units in East Jerusalem, one day after U. S. special envoy to the Middle East George Mitchell announced that the Israeli and Palestinian sides had agreed to hold indirect talks.

"George Mitchell is planning to be in the region next week and for further discussions on these issues," Crowley said, adding that the United States would continue to push the Israeli government and the PNA to hold peace talks despite the dispute over Israel's settlement activities.

The Obama administration has mounted pressure on both sides to resume the talks, which are aimed at reaching a permanent peace agreement that leads to the establishment of an independent Palestinian state within two years.

Abbas insists that the talks would not resume until the Israeli government totally freezes the Jewish settlement construction in the West Bank, where at least 450,000 Israelis live in some 100 Jewish settlements.