TEL AVIV, September 13, 2009 (WAFA)- U.S. special Mideast envoy George Mitchell said Sunday that efforts were still needed to bridge an Israeli-American dispute over construction in the West Bank,the Israeli daily Haaretz said.

Mitchell, who arrived in Israel Saturday night for more discussions on the long-running issue, said reports that the dispute has been resolved are 'premature.'

'While the suggestions that we have finalized and reached agreement on a range of issues [are] inaccurate because they are premature, we hope they will be accurate in terms of moving forward in the very near future,' he said as he met President Shimon Peres.

U.S President Barack Obama has demanded that Israel halt completely all settlement construction in the West Bank. Netanyahu replied that while Israel would build no new settlements, it would continue construction inside existing ones, to allow for population expansion, or 'natural growth.'

During their meeting, Israeli President Shimon Peres and Mitchell both called for a quick resumption of peace negotiations; it was the president's first public appearance since collapsing on stage during a speech a day before.