Prime Minister Ehud Olmert called Palestinian Authority Chairman Mahmoud Abbas on Sunday and agreed that their officials would continue talks to prepare for a meeting between them, Olmert's office said.

The United States has urged both sides to renew peace talks, stalled since 2003 due to violence. Recent efforts to arrange the long-awaited summit have been deadlocked.

Israel demands the release of Israel Defense Forces soldier Gilad Shalit, held captive by militants in Gaza since a cross-border raid in June. Abbas, who has been working to try to secure his freedom, wants Israel to first promise to free hundreds of Palestinian prisoners.

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During their phone call, the Israeli leader gave Abbas his good wishes to mark the end of Ramadan, Olmert's office said in a statement.