Gaza, ALRAY - US administration seeks to extend  the peace negotiations by a year  in case Kerry's  peace plan does not succeed, western diplomatic sources said .

The sources reported that  both Palestinians and Israeli negotiators rejected most of  Kerry's peace plan. Prime Minister of Israeli occupation Benjamin Netanyahu rejected most of  Kerry's peace plan  and insisted on the Israeli presence in the Jordan valley.

Palestinian President  Mahmoud Abbas rejected “most” of the key details, saying  that they were too kind to Israel. Palestinian side rejected to recognize Israel as a Jewish state  and to establish the  Palestinian capital in just part of Jerusalem.

Kerry has said the peace treaty will deal with all the core issues dividing the two sides. These include the contours of the future Palestinian state, refugees,  fate of Jerusalem, security and mutual recognition.

"Kerry proposed a new formula to resolve the issue of Jerusalem, but it's not clear and is ambiguous, and therefore we can't accept," Palestinian official said.

Under the proposal, a unified Jerusalem would be the capital of both states without defining the outlines of east Jerusalem, the official said.

Palestinians want the borders of their state to be based on the 1967 lines from before the Six-Day War.

They have also insisted there should be no Israeli troops in their future state.

But Israel wants to retain existing settlements it has built inside the occupied Palestinian territories. It also wants to maintain a military presence in the Jordan Valley.

A Palestinian official said that Netanyahu deceived Kerry by proposing to him ambiguous ideas .

Western diplomatic source explained that the last meeting between  Netanyahu and  Kerry lasted for seven hours in which they entered in an argument . Some members of the negotiation team said that they hear their screams from outside the room.

US president said that Kerry's chance  to reach an agreement between the Palestinians and the Israelis is  less than 50 percent.