Rice says Israeli-Palestinian talks on right track

Israel's Prime Minister Ehud Olmert (R) speaks with U.S. Secretary of State Condoleezza Rice during their meeting in Jerusalem March 31, 2008 in this photograph released by the Israeli Government Press Office (GPO).

AMMAN (Reuters) - U.S. Secretary of State Condoleezza Rice said on Monday that Israeli-Palestinian peace talks were on the right track and she believed a deal was still possible by year's end.

"I have to say I find very impressive the work that is being done and the seriousness of the process and I think it's all moving in the right direction," Rice said at a news conference with Palestinian President Mahmoud Abbas in Jordan.

Commenting on U.S. hopes for an agreement before U.S. President George W. Bush leaves office in January, she said: "I fully believe that it is a goal that we can reach."

Abbas likewise expressed confidence despite differences with Israel over what the outcome of the negotiations should be.

"I am confident, God willing, we will reach a comprehensive peace in 2008. We, the Israelis and the Americans and all the concerned parties in the region, are working to achieve this," Abbas said.

Israeli officials say the goal of the talks was to reach understandings setting out the shape and structure of a future Palestinian state rather than a comprehensive peace agreement this year that would be implemented.

(Writing by Jeffrey Heller, Editing by Adam Entous)