Saeb Erekat, the Palestinian chief negotiator, has given warning that continued illegal settlement expansion in the occupied Palestinian territories may mean a two-state solution is no longer an option.

The issue of settlements has become heated since Hillary Clinton, the US secretary of state, praised Israel for making what she called "unprecedented" concessions on the issue, even though Binyamin Netanyahu, the Israeli prime minister, brushed off US and Palestinian demands for a construction freeze.

Clinton has since been trying to reassure Arab leaders.

Al Jazeera's Nour Odeh reports from Ramallah.