The Foreign Secretary William Hague has said he is “disappointed” Israel has not renewed its freeze on settlement building.
The announcement comes after the United States abandoned its efforts to persuade the Israeli government to freeze construction in the West Bank for a further 90 days.
Mr Hague said: “I am disappointed that Israel has not renewed the freeze on settlement construction and that peace talks are currently on hold.
“It is Britain’s longstanding view that settlements are illegal under international law and an obstacle to peace.
“I spoke to US Envoy Senator Mitchell to underline Britain’s support for work to find a way forward. The leadership of the United States remains vital.
“There is an urgent need for progress to secure a two state solution, based on 1967 borders, with Jerusalem as the future capital of two states and with a fair settlement for refugees.
“This is important for Israelis, for Palestinians and for the international community including the UK.
We will continue to work with the United States, the parties to the conflict and with our EU and UN partners to achieve a two state solution. In addition, we will continue to press for an end to all settlement activity.”