"Chief Palestinian negotiator Saeb Erekat flatly denied the report." So this is not news, but an unsubstanciated rumor. If it were true, it would discourage the PA from negotiating as they would assume they can get all they want without talking to the Israelis. We would only see more demands and ultimatums. If true, Obama has people working for him who know better. He should listen to them.
Israeli PM to Palestinian President Abbas: We must fight terror together (Haaretz)
from the article: 'U.S. told Palestinians it would consider allowing UN censure of Israel'