BEIT-UL-MOQADDAS (AFP) -- Prime Minister Ehud Olmert said on Sunday that Israel was ready to talk with Arab states over their peace plan as he held the first round of planned regular meetings with Palestinian president Mahmud Abbas.

"We are ready to hold talks with any combination of Arab states on their ideas and I would be glad to hear their ideas on the Saudi initiative," Olmert said at the weekly cabinet meeting. "I'll be glad to hear their ideas and for them to listen to ours," he said. "I hope there will be a chance for such meetings."

He was referring to a blueprint revived during an Arab League summit last month which offers Israel peace and normal ties with Arab countries in exchange for withdrawing from Arab land occupied during the 1967 Six Day War, allowing the creation of a Palestinian state and the return of refugees.

Israel, which initially rejected the plan when it was first unveiled in 2002, has said recently it could provide a basis for talks, provided there are amendments to the refugee issue -- something the Arab states have refused. "We are looking for a way to advance the Saudi initiative," Deputy Prime Minister Shimon Peres said. "Both sides can come with their positions and since there are disagreements between the two sides, we have to find a way to bridge them." Qatari Prime Minister Sheikh Hamad bin Jassem al-Thani, meanwhile, on Sunday urged Israel to respond to Arab gestures for peace in order to avoid a "catastrophe."

The statements came ahead of a meeting of 12 Arab ministers in Cairo on Wednesday to discuss the Saudi-drafted peace initiative.

Critics have accused Olmert, whose ratings are approaching zero, of being disingenuous in turning to the dormant peace process as an attempt to divert attention from criticism over last year's war against Hezbollah and a string of corruption scandals. Earlier this month, Arab League chief Amr Mussa rejected Olmert's offer to participate in a meeting of Israelis, Palestinians and "moderate" Arab nations because the Israelis described the return of refugees as a "red line." "Its only goal was to get normalization for free," Mussa said of the offer, adding that it "wasn't serious and offered nothing new."

Olmert and Abbas met in Beit-ul-Moqaddas on Sunday in the first of what are due to be regular meetings between the two leaders aimed at jumpstarting peace talks, which have been largely stalled for six years, and that were agreed during a visit last month by U.S. Secretary of State Condoleezza Rice.

"Olmert and Abu Mazen (Abbas) discussed mainly the diplomatic horizon" without delving into core issues of negotiations, a senior Israeli government official told AFP.

The Israeli premier again urged Abbas to do all to secure the release of an Israeli soldier seized by Gaza-based militants last June, which has since been a main stumbling block between Israelis and Palestinians, the official said.

The two sides did not discuss the details of a possible Palestinian prisoner release in exchange for Corporal Gilad Shalit, drawn-out negotiations that have been mediated by Egypt.

The two leaders agreed to hold their next round of talks before the end of the month in the West Bank town of Jericho, the first such high-level meeting in a Palestinian city, said Palestinian chief negotiator Saeb Erakat.