Palestinian President Mahmoud Abbas met with Egyptian and Arab League officials on Saturday to discuss the stalled direct peace talks with Israel, Egypt's official MENA news agency reported.

Abbas, who arrived in Cairo on Saturday, talked with Arab League Secretary General Amr Moussa and Egyptian intelligence chief Omar Suleiman about the latest situation of the peace process, the report said.

The talks also involved "the Arab countries' future moves in the event of Israel's continued intransigence and failure of endeavors to produce a settlement freeze," it said.

Abbas will meet Egyptian President Hosni Mubarak on Sunday.

In early October, the Palestinians halted the U.S.-sponsored direct talks with Israel, four weeks after it resumed in Washington. The decision was made after Israel refused to extend a ten-month moratorium over settlement building that ended on Sept. 26.

There were recently new hopes of the peace talks as U. S. President Barack Obama has reportedly offered Israel a package of incentive in exchange for Israel's settlement freezing.