Prime Minister Ehud Olmert said Tuesday that he is not certain Israel and the Palestinian Authority will be able to reach a peace agreement by the end of 2008, as they committed themselves to doing in the November U.S.-sponsored Annapolis conference.

"We have a desire to reach an agreement within the year 2008," Olmert told a business conference in Tokyo, where he is making his first visit as prime minister. "I am not sure we will make it, but we are determined to make a giant step forward to end this dispute once and for all."

The prime minister said he would make every effort to reach an agreement with Palestinians that would lead to a two-state solution to a decades-old conflict.

"In these days we are making exceptional efforts to conclude all differences with our neighbors and to resolve outstanding disputes with our Palestinian neighbors," he said.

Olmert and Palestinian President Mahmoud Abbas met last week and agreed to accelerate the peace talks.

The prime minister is due to meet U.S. Secretary of State Condoleezza Rice in Tokyo on Thursday to update her on the peace talks and growing tensions between Israel and the Gaza Strip's Hamas leaders.

"There will be no better opportunity, and we want to make every possible effort to seize this opportunity," said Olmert, who is to meet Japanese Prime Minister Yasuo Fukuda on Wednesday.