The success of US special envoy George Mitchell's visit to Israel will be measured by whether or not it leads to the scheduling of a three-way summit between US President Barack Obama, Israeli Prime Minister Benjamin Netanyahu and Palestinian President Mahmoud Abbas during the UN General Assembly in New York next week.

As of yet, it remains unclear whether such a meeting will take place, and both parties are still in talks with Mitchell on a construction freeze in West Bank settlements, and goodwill gestures on the part of the Palestinians and the Arab world.

The Netanyahu-Mitchell meeting was scheduled to take place on Monday, but was postponed to Tuesday to enable the prime minister to attend the funeral of Asaf Ramon, son of late Israeli astronaut Ilan Ramon, who died in an F-16 crash.

Monday morning, top Jerusalem sources said the possible three-way summit is not the most important thing that may come of the meeting. "The substance to follow is more important," said an aide to the prime minister.

"It is important that the Palestinians know to prevent terror, and ensure the establishment of their government institutions," the source continued, stressing the importance of promoting economic peace which will serve as a positive framework for talks in the future.

However, the source did say that "the three-way summit will be a good opening shot for setting the process in motion, and will prove that all parties are seeking the path of dialogue, which will enable the establishment of a Palestinian state to live in peace, demilitarized, alongside Israel."

Netanyahu's announcement that he is willing to suspend construction in settlements for a limited period expedited talks with the Americans, despite Defense Minister Ehud Barak's authorization for the construction of 455 housing units last week.

While the US was displeased with the decision, Mitchell remains determined to bring about a three-way summit by the end of his Mideast tour.

During his meeting with Mitchell, Netanyahu hopes to hear of additional steps to be taken by Arab states towards normalization of ties with Israel that will jumpstart talks with the Palestinians.

As of yet it remains unclear what gestures Mitchell was successful in convincing Arab states to commit to, or what additional gestures he may achieve on his current visit.

Netanyahu also hopes to be assured that the US does not plan to push for a year-long settlement freeze, but rather a shorter period of six to nine months. The prime minister also plans to reach an agreement with the Americans that any Israeli gestures must not disrupt the lives of settlers in the West Bank.

Mitchell's meeting with Netanyahu comes after meetings with Foreign Minister Avigdor Lieberman, President Shimon Peres and Defense Minister Ehud Barak on Sunday.

Lieberman told Mitchell of Israel's demand that settlers in the West Bank remain able to lead normal lives. President Peres, who is in sync with Netanyahu, said a three-way summit during the UN General Assembly is necessary to resume the peace process.

Barak discussed with Mitchell limiting period of the Israeli compromise on freezing construction in settlements to one year.