A visit by British Prime Minister Tony Blair has spurred expressions of willingness by Prime Minister Ehud Olmert and Palestinian Authority Chairman Mahmoud Abbas to resume negotiations.

Following talks with Blair in Ramallah on Sunday, Abbas said he wished to express the Palestinian "readiness to resume serious negotiations fully."

He said that he was "ready to meet Prime Minister Olmert without prior conditions, and we are ready to begin immediately the preparations for this meeting."

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Abbas' statement followed a similar call by Olmert after his meeting with the British leader in Jerusalem on Saturday.

Blair said Sunday in Ramallah that the international community "must re-commit" to the two-state solution and to the road map.

"For the past months, the situation has gone backwards and not forwards," Blair said. But now, he added, "there is window of opportunity, even if it does seem very bleak."

The British leader also welcomed moves by Abbas' Fatah movement and the ruling Hamas party to form a unity government.

"We are serious about putting together a national unity government to put an end to the siege imposed on us," Abbas said, referring to the international sanctions implemented after Hamas' win in the parliamentary elections earlier this year.

The Hamas-led government has been asked by the Quartet - the U.S., the European Union, Russia and the United Nations - to renounce violence, recognize Israel's right to exist and accept all former agreements between Israel and the Palestinians - in return for recognition.

If the Palestinians formed a unity government "based on the Quartet requirements... then I believe it is right that the international community deal with such a government," he said.

But Hamas again said Sunday that it rejected these demands. Spokesman Sami Abu Zuhri said the group is ready to form a coalition government with Fatah, but "not according to standards that are dictated."

"I want to renew our rejection of these [Western] decisions because we consider them as biased, unjust and conditional decisions," Abu Zuhri said.

Blair did not meet with Hamas Prime Minister Ismail Haniyeh or other members of his government during his Ramallah visit.

Meanhwhile, Olmert said Sunday that Israel must resume talks with the Palestinians, and create a "new horizon" regarding ties with its neighbors.

"The time has come to renew the diplomatic negotiations with the Palestinians, in order to create a new horizon not just with the Palestinians, but with all the states in the region," Olmert told the weekly cabinet meeting in Jerusalem.

Blair met earlier Sunday with the families of Ehud Goldwasser and Eldad Regev, the two soldiers kidnapped by Hezbollah in July, as well as that of Gilad Shalit, snatched by Palestinian militants in June.

He also held talks with Foreign Minister Tzipi Livni and Defense Minister Amir Peretz.

Olmert said Saturday that he remains "dedicated to advancing the political process with the Palestinians" in accordance with the road map.

Speaking at a press conference in Jerusalem after his meeting with Blair, Olmert suggested Saturday he would meet with Abbas even though no progress has been made toward the release of Gilad Shalit.

However, Olmert warned, "The condition for any progress [with the Palestinians] will have to be the release of Shalit, and Abbas recognizes this very well."

Blair expressed support for renewing dialogue with Abbas despite Hamas' control of the Palestinian parliament and government.

Olmert had previously said he would not try to bypass the Hamas government by negotiating with the moderate Abbas.

"I have always been willing to meet with Abbas, the head of the Palestinian Authority, and now too I have no conditions for this matter. I can say a meeting with Abu Mazen [Abbas] could even be helpful on the issue of Gilad Shalit," Olmert added.

He did not say when the meeting with Abbas would take place.

However, Olmert reiterated, "I assured Prime Minister Blair I am ready to work closely with the chairman of the Palestinian Authority, Abbas, to implement the road map."

He stressed there could be "no shortcuts" in enacting the road map, which he said calls for the dismantling of Palestinian terrorist organizations as an initial step.

Olmert also praised Blair for working "actively to create stability throughout the Middle East."

Blair said it was important to "re-energize this process" between Israel and the Palestinians, adding, "The stability of the Middle East affects Britain."

"We are at a very preliminary stage in talking about these things, but I hope very much in the time to come that we can make progress, and of course it is important that Corporal Shalit is released," he said.

Olmert and Blair also discussed Iran's nuclear efforts and the UN-brokered cease-fire that brought an end to the Lebanon war.

Olmert praised Blair for taking a staunch position against Tehran's alleged efforts to develop nuclear weapons. But the British leader refused to say whether he would back sanctions against Iran if current negotiations fail to force Tehran to comply with international demands to halt uranium enrichment.

"We will hold firm on the Iranian issue," Blair said. "People recognize that it is important that Iran abide by obligations," he said.

Olmert said the Lebanese government needs to be in full control of the country, referring to Hezbollah's grip on the south of the country before the war, and said Israel has no conflict with the Lebanese government and people.

Blair said the full implementation of UN Security Council Resolution 1701, which led to the cease-fire, would be "a major strategic advance."