Arab League chief says Mideast talks off

Moussa said the Arab League's backing, won last week, for four months of proximity talks was now under reconsideration and Arab ministers would meet in a few days to make a decision.

"In case of the failure to halt Israeli actions which are changing the population structure and geographic composition of the occupied Palestinian territories including East Jerusalem, and to withdraw the announcement for the construction of hundreds of settlements in occupied Jerusalem, the committee concludes that the proposed talks are irrelevant," Moussa said.

Abbas broke off peace talks with Israel after Israel's offensive in the Gaza Strip in December 2008.

Israeli Prime Minister Benjamin Netanyahu in November ordered a 10-month halt to new housing starts in West Bank settlements but exempted areas Israel considers part of Jerusalem and projects for Jewish homes in the eastern sector of the city, captured in 1967.

(Writing by Yasmine Saleh; Editing by Jon Hemming)