Arab League foreign ministers threw their weight behind the Palestinian president's refusal to negotiate with Israel unless it renews restrictions on West Bank settlement construction, but gave US mediators another month to keep peace talks from collapsing.

The grace period, agreed to Friday night at a meeting of the 22-member Arab bloc in Libya, gave the US some critical breathing room but also came with a warning to Israel of the dangerous consequences should it refuse to compromise.

Washington welcomed the outcome and pledged to forge ahead with efforts to keep both sides at the table in talks that began just over a month ago. They are the first direct Mideast peace talks in nearly two years, but they quickly faced a huge hurdle with the expiration of a 10-

month Israeli moratorium on new construction in West Bank settlements.

Israel has refused to extend the curbs, though it is considering compromises. The Palestinians have said they won't return to the talks until the restrictions are again in place, arguing that any negotiations aimed at a two-state solution are pointless as long as Israel is building on land claimed by the Palestinians.

"We support the Palestinian president's position calling for a complete halt of all settlement activities in order to resume negotiation," the Arab League's deputy secretary general, Ahmad Bin Helli, said as he read a statement issued after the ministerial meeting.

But the ministers also said they would resume meetings in a month to study alternatives and decide on next steps, giving the United States extra time.