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The administration has been exerting pressure on the Israeli government and the Palestinian National Authority (PNA) to resume the talks, so that the two sides could reach a permanent peace agreement that leads to the establishment of an independent Palestinian state within two years.
The talks were stalled in December 2008 when Israel launched a massive military campaign against the Islamic Hamas movement in the Gaza Strip.
PNA Chairman Mahmoud Abbas insists that the talks shall not resume until the Israeli government totally freezes the Jewish settlement construction in the West Bank, while the Israeli side vows to ensure the "natural growth" of the Jewish settlements.
At least 450,000 Israelis live in more than 100 settlements in the West Bank, including East Jerusalem.
After Israel's announcement to build more homes in East Jerusalem, the PNA decided to suspend the indirect talks with Israel, which were brokered by U.S. special envoy George Mitchell following tough shuttle mediation between Israel and the Palestinians.
Mitchell has been in Israel and the West Bank for saving the indirect talks.
In an interview with Fox News on Wednesday, U.S. President Barack Obama convinced the Israelis that the U.S.-Israel relations would not be undermined by the disagreement over Jewish settlement activities.
"Israel's one of our closest allies, and we and the Israeli people have a special bond that's not going to go away," Obama said, adding that there was "no crisis" in the U.S.-Israel relations and the United States sticks to its commitment to Israel.
President Obama on Tuesday is expected to meet with Israeli Prime Minister Benjamin Netanyahu who will be in Washington for addressing the AIPAC conference.