Ehud Olmert met Mahmoud Abbas in Jerusalem.
The Israeli prime minister and Palestinian Authority president on Monday held their latest in a series of accelerated summits to prepare for a U.S.-sponsored peace conference.
Aides said the two leaders would resume efforts to agree on a basis for reviving negotiations on establishing a Palestinian state.
Israel and the Palestinian Authority are keen to show progress to U.S. Secretary of State Condoleezza Rice, who is expected to visit the region next week.
President Bush has called for an Israeli-Palestinian peace conference, attended by other major Middle East players, to be held in the fall. Diplomats expect the conference to take place in the Washington area in November.