A planned meeting for Thursday between Israeli Prime Minister Benjamin Netanyahu and the US Middle East envoy was called off because of disagreements over settlement growth, Israeli media reported on Wednesday.

Netanyahu aides said the Israeli leader decided to call off the meeting and denied an the headline story of Yedioth Ahronot newspaper that Obama administartion had cancelled it over Israel's refusal to halt "natural growth" in the settlements.

"The decision to cancel the meeting ... was taken by the prime minister. We must be sure before such a meeting that professional work has been done on a series of issues," a senior Israeli official was quoted as saying by AFP.

Yedioth Ahronot had quoted an unnamed Israeli official as saying Washington issued a "stern" message to Netanyahu to halt all settlement activity in the West Vank. "Once you've finished the homework we gave you on stopping construction in the settlements, let us know. Until then, there's no point in having (envoy George) Mitchell fly to Paris to meet you," the paper quoted the official as saying.

© 2009 Al Bawaba (www.albawaba.com)