The Palestinian President and his aides have rejected Binyamin Netanyahu's proposal for a two-state solution in which some settlements would end up outside Israel's borders as part of a wider compromise reflecting "the dramatic demographic changes that have occurred since 1967".
In a well-received address to a joint session of the US Congress on Tuesday, the Israeli Prime Minister vowed to be generous about the size of a future Palestinian state. He said Israel was willing to make "painful compromises" to achieve peace.
But at a meeting of the Palestine Liberation Organisation in Ramallah, Mr Abbas said Mr Netanyahu had offered "nothing we can build on".
And despite the statement by US President Barack Obama that a unilateral declaration of Palestinian statehood at the UN in September would not succeed, Mr Abbas said he would continue with this plan if no breakthrough in negotiations was achieved by then.