US Secretary of State Hillary Clinton said on Thursday she looked forward to working with President Mahmoud Abbas in "any new capacity" after he announced on Thursday he would not seek a second term.

"I look forward to working with President Abbas in any new capacity," Clinton said, noting that the two discussed his political future when they met last week in Abu Dhabi, Reuters was reporting.

"He reiterated his personal commitment to do whatever he can to achieve a two-state solution to the Israeli-Palestinian conflict ... I look forward to working with President Abbas in any new capacity," she added.

The president said he decided to step down when it became clear the US would not alter its position in favor of Israel and the settlement enterprise. His announcement came days after Palestinians were left stunned when Clinton praised as unprecedented Israeli Prime Minister Benjamin Netanyahu's offer to limit construction in West Bank settlements to some 3,000 additional housing units.

Pressed for comment by reporters in Washington, State Department spokesman Ian Kelly called Abbas' planned departure "a Palestinian solution to a Palestinian problem," but refused to say whether the US supported his decision.

"It's not up to us to say whether or not he should change his mind," Kelly added in Washington. "This is a decision for him to make."

"We respect him... and he's been a good partner for us," Kelly added. "And he has been committed to the – to our shared goal: to a two-state solution, to creating a better future for his people. And we hope that he will continue to play that kind of productive role."

Confirming day-long rumors of his impending retirement, Abbas said on Thursday the decision came amid Israel's intransigence on settlements and the international community's indifference to it. "I do not intend to seek a second term in the upcoming [24 January 2010] election," he said in a televised address. "This decision is not up for debate or negotiation."