U.S. still seeking Mideast peace deal by year-end

WASHINGTON (Reuters) - President George W. Bush's goal of securing a Middle East peace deal before he leaves office remains unchanged, the White House said on Wednesday, despite Israeli Prime Minister Ehud Olmert's plan to step down.

"We will continue to work on a deal before the end of the year," White House spokesman Gordon Johndroe said when asked how Olmert's departure would affect the fragile Israeli-Palestinian peace process.

Bush's effort to broker an agreement before his term ends in January has long been viewed with deep scepticism, not least because of Olmert's legal troubles and political weakness.

Dogged by corruption scandals, Olmert, a key player in Middle East negotiations, said earlier on Wednesday he would resign after his ruling Kadima party chooses a new leader in a September 17 internal election.

U.S. officials had played down the potential fallout from Olmert's departure, saying he is not the only Israeli leader committed to peacemaking.

Secretary of State Condoleezza Rice launched a round of talks in Washington on Wednesday with former Palestinian Prime Minister Ahmed Qurei and Israeli Foreign Minister Tzipi Livni, who is considered a possible successor to Olmert.

"President Bush spoke with Prime Minister Olmert just before the prime minister's announcement," Johndroe said. "He wishes him well and will continue to work closely with him while he remains prime minister."

"Relations between the United States and Israel during Prime Minister Olmert's tenure have been exceptionally close and cooperative, and the president has appreciated his friendship, his leadership, and his work for peace and we're confident that the close United States-Israel relationship will continue in the future," he added.

(Reporting by Matt Spetalnick; Editing by Kristin Roberts)