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"The Palestinian leadership hasn't heard of such a deal," said Abbas in a joint news conference with visiting European Union foreign policy chief Javier Solana, following a meeting between the two in Ramallah.
"So far we haven't received any information from the U.S. administration over what has been reported earlier in Israeli media that a deal was reached with Israel over the issue of settlements," said Abbas.
"We usually don't believe what is published in the media, but we wait for the official U.S. response to the issue," said Abbas, who still insisted that no talks with Israel, unless the latter stops or freezes the settlement activities.
The Israeli media reported earlier Monday that hawkish Israeli Premier Benjamin Netanyahu has reached a compromise with the U.S. administration on the issue of settlement for the renewal of peace talks.
"The main basis for the renewal of peace talks is the full cessation of settlement activities, finding a clear reference to the peace process and implementing the international resolutions related to resolving the conflict," said Abbas.
Meanwhile, Abbas said that he will head to Egypt on Tuesday to hold talks with Egyptian President Hosni Mubarak over the inter-reconciliation and ending the current feuds with Hamas movement.
Solana arrived earlier in the region, where he will hold talks with Israeli and Arab leaders over pushing ahead the stalled Middle East peace process.
Solana told reporters that he came to the region "to exchange ideas with different leaders over pushing forward the peace process and resuming the peace negotiations."