The Palestinians, backed by Arab powers, said on Saturday they would give the United States one month to persuade Israel to halt the building of settlements in the West Bank or risk the collapse of peace talks.

The message, issued at an Arab League meeting in Libya, represented a reprieve for Washington as it tries to salvage 5-week-old talks stalled over Israel's refusal to extend a settlement freeze on occupied land where Palestinians seek statehood.

Abbas's proposals included seeking U.S. and U.N. pledges of recognition for a future Palestine taking in all of the West Bank, and a threat by the president to step down over the impasse, diplomats said.

"We are giving the United States an opportunity to convince Israel to stop settlements. We are giving them a month which will be a period of political interaction between the United States and Israel," Abbas spokesman Nabil Abu Rdainah said.

The Palestinians say settlement growth on land occupied by Israel in 1967 will make the establishment of a viable Palestinian state impossible. They want to found their state in the West Bank and the Gaza Strip, with East Jerusalem as its capital. Israel quit Gaza in 2005 but insists on keeping all of Jerusalem -- its declared capital -- and swathes of West Bank settlements under any peace deal.