Palestinian officials said they have postponed plans to force a United Nation Security Council vote demanding the end of the Israeli occupation as part of their bid for statehood.
Palestinian Authority foreign minister Riad Maliki said the submission of a draft resolution on the subject has been delayed, as diplomatic efforts to secure a majority in the UN's executive body have so far failed.
Earlier, Palestine Liberation Organisation (PLO) officials said the vote was to take place before the end of this month.
Maliki explained that the Iranian nuclear talks have overshadowed the Palestinian issue in the agenda of the Security Council permanent members in recent weeks.
"The permanent member states have informed us that they would give priority to the Iranian issue not to the Palestinian statehood issue," Maliki told Palestinian news agency Ma'an.
"We haven't backed down on the resolution or cancelled it despite the international opposition and US threats."
The draft resolution calls for the removal of Israeli forces from Palestinian territories, with the creation of an independent Palestinian state within the 1967 war lines.
According to details of the text that emerged last month, the proposal urges "the achievement of the independence and sovereignty of the State of Palestine and the right to self-determination of the Palestinian people". It also states that Israel must withdraw all troops within November 2016.
The US has been pressuring the Palestinians to not proceed with threats to cut aid to the Palestinian Authority.
The resolution needs the backing of nine of the 15 states sitting in the Security Council to pass but can be vetoed by any of the five permanent members, including the US.