Israeli Prime Minister Ehud Olmert has expressed wishes to continue peace talks with the Palestinians after meeting with Palestinian President Mahmoud Abbas.

The two leaders met in Jerusalem one day after United States Secretary of State Condoleezza Rice urged Israel to do more to improve living conditions in the West Bank.

Palestinian negotiator Saeb Erekat said Abbas also urged Israel to take more efforts during the talks.

"President Abbas stressed the need to have the Israeli government comply with its obligations emanating from the road map. In particular the cessation of settlement activities including natural growth, dismantling settlement outposts, the opening office in East Jerusalem and releasing of prisoners and also the return of the deportees."

A spokesperson from the Israeli government said the talks are quite possibly the most serious one between the two sides so far.

Several rockets and mortar shells were fired by Palestinian fighters at Israeli targets around the Gaza Strip ahead of the meeting.