A senior Palestinian official on Friday said the Palestinians would reject any compromise with Israel over the settlement issue that doesn't include the complete freeze.

The official, a member of the Palestinian negotiation team, told Xinhua on condition of anonymity from New York that "any offer for a compromise doesn't include a complete freeze of settlement, is unacceptable."

"Any compromise on freezing settlement would resume construction of settlement, even partially and in specific areas means for the Palestinians a continuation of all types of settlement," said the official.

He added that "the Palestinian position is clear and firm and we want a complete freeze and cessation of settlement." However, he said "the Palestinians can show flexibility concerning the timetable for the complete permanent freeze of settlement construction."

Israeli media reports on Friday said that Israel is ready to reach a compromise with the Palestinians concerning the dispute over the issue of settlement construction "in condition that this freeze won't be permanent."

The Palestinians had threatened to withdraw from the negotiations with Israel in case the latter rejected to extend the 10-month moratorium of settlement freeze that ends on Sept. 26.

U.S. President Barack Obama had renewed on Thursday before the General Assembly of the United Nations his calls on Israel to extend the moratorium of freezing settlement construction "to keep a proper atmosphere for the talks."

The direct peace negotiations between Israel and the Palestinians, sponsored by the United States, were launched on Sept. 2, amid Israeli rejection to freeze settlement.