Livni told Israel Radio on Thursday that although there are ministers in the current system who prefer a greater Israel over a democratic one, they represent a minority.

"We must continue to strive for peace in the days when it seems that there is no chance to achieve it," she told the radio station.

Meanwhile, Israeli Prime Minister Benjamin Netanyahu promised leaders of settlements municipal councils that he would reconsider a halt on approving new settlement projects in the West Bank.

"You have no shield greater than I. I fight for you." Netanyahu assured the top settlers in a Tel Aviv meeting late Wednesday, according to Israel's daily Haaretz.

"But there are international constraints and you know them," Netanyahu maintained.

International law considers the West Bank and East al-Quds occupied territories taken by the Israeli regime in 1967, viewing all settlement building on the land as illegitimate.

Palestinian negotiators insist that Israeli settlement building must stop before a comprehensive peace agreement can be reached.

NTJ/SHI