Foreign Minister and new Kadima leader Tzipi Livni on Tuesday held her first meeting with chief Palestinian negotiator Ahmed Qurei (Abu Ala) since she was entrusted with the task of forming a government.

Qurei said that in their Jerusalem meeting, Livni assured him that talks would continue while she puts together her coalition.

"She stressed that she'll continue the peace process, and that if she forms the new Israeli government, there will be no conditions or obstacles to continue the peace process," Qurei told The Associated Press.

Qureia also said the year-end target for a peace deal would be hard to meet, but signaled progress has been made.

"The negotiations we have conducted should not be thrown in the trash," he said. "What has been achieved should be the basis for continued negotiations with the new American administration and with the new Israeli government. If we can't reach an agreement this year, there is a big possibility of reaching an agreement next year."

Livni has been serving as Israel's chief peace negotiator since talks were relaunched last November.

The new Kadima leader did not comment on the meeting, and officials in her office did not return calls.

Meanwhile, a senior Palestinian official said that there was no longer any point negotiating with Prime Minister Ehud Olmert since he was about to leave his post and did not have the mandate to sign an agreement.

Speaking to Israel Radio the official added that Olmert was interested in an agreement on principles, but that the Palestinians were opposed to such a move.

He went on to say that Qurei (Abu Ala) did not travel to Washington with Palestinian Authority President Mahmoud Abbas since he was opposed to continuing negotiations with Olmert.