Israel does not want to set borders before settling the right of return while palestinians refuse giving up the right of return before setting borders. In itself that is total bull, Israel does not want to set borders at all since it wants to annex huge chunks of the west bank and maintain a tight control on the jordan valley. Offer the Palestinians the 67 borders with east Jerusalem, they will give up the right of return. Israel wants to create crowded bantustans inside the west bank with no contiguity, deprived of access to resources, and totally dependant on Israel.
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France's Hollande to meet Russia's Putin on anti-Islamic State coalition campaign (DPA)
from the article: Netanyahu hails U.S. retreat on settlement freeze demands