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The meeting, which lasted nearly three hours, also included Justice Minister Tzipi Livni, Defense Minister Moshe Ya'alon and Israeli envoy Isaac Molho.
Kerry is set to meet with Palestinian President Mahmoud Abbas later on Friday. But even as he made his way to Ramallah Palestinians were protesting on the streets of the city, chanting "Go home." One Palestinian official described the framework agreement that Kerry is trying to broker as 'a worthless piece of paper."
Earlier on Friday, Foreign Minister Avigdor Lieberman told Kerry that he greatly appreciates the great efforts he is investing in brokering a solution to the conflict and promoting calm in the region, the Foreign Ministry said in a statement. "Continued dialogue with the Palestinians is of great importance," Lieberman told Kerry, according to the statement.
The foreign minister also told Kerry that an agreement between Israel and the Palestinians must be based on solid foundations of security for Israel and a stable economy for the Palestinians.
Protests in Ramallah
Around three hundred activists with the left-wing Democratic Front for the Liberation of Palestine party rallied in downtown Ramallah hours before Kerry's scheduled arrival.
"The people want the fall of the framework!" they chanted, evoking the chants heard in protests throughout the Middle East in 2011. "It's clear, Kerry, we don't want to see you! The Americans are the enemy of our people!" they added.
Dozens of riot policemen and plainclothes security forces prevented their march from reaching Ramallah's presidential compound, where Abbas was expected to receive Kerry.
Meanwhile, U.S. Republican Senator John McCain, who is also in Israel and has conferred with the Israeli Prime minister, told a news conference on Friday that Netanyahu doubted the proposals.
"Netanyahu has serious, serious concerns about the plan as it has been presented to him, whether it be on the ability of Israel to defend its borders, on the reliability of a Palestinian state ... and particularly on the overall security," he said.
"We also are very concerned," he said, standing alongside fellow Republican Senator Lindsey Graham.