(CNN) -- A contentious issue between Israelis and Palestinians that some say could derail Mideast peace talks is set to reach a milestone on Sunday.
Israel's moratorium on settlement construction in the West Bank is scheduled to end Sunday. Israelis and Palestinians are in the initial rounds of face-to-face peace talks, and Palestinians have said a restart by the Israelis would be reason enough to end talks.
"Israel must choose between peace and the continuation of settlements," Palestinian Authority President Mahmoud Abbas told the U.N. General Assembly on Saturday at its annual debate.
In the past few days, Prime Minister Benjamin Netanyahu has spoken to U.S. Vice President Joe Biden, U.S. Secretary of State Hillary Clinton and former British Prime Minster Tony Blair about working out a compromise, an Israeli government source said.
The United States has pushed Israel to extend the moratorium.
