A lead Palestinian peace negotiator is questioning whether a peace agreement can be reached with Israel by the year-end deadline, saying it would take a miracle to wrap up a deal to resolve the decades-old conflict.

Speaking in the West Bank on Wednesday, Ahmed Qureia said the two sides are discussing all the issues at the heart of their 60-year-old conflict, but serious gaps still exist.

"Unless there is a miracle," Qureia said, he doesn't think a deal can be reached this year.

Israel and Palestinians renewed peace talks at a U.S.-hosted summit last November in Annapolis, Maryland, where they vowed to try to come to an agreement by the end of 2008.

However, Palestinian President Mahmoud Abbas and Israeli PM Ehud Olmert appear to have made little progress so far, and there are doubts the goal will be reached.

U.S. Secretary of State Condoleezza Rice said Tuesday the U.S.-backed peace talks offer the best chance for a meaningful settlement of the six-decade conflict in the Middle East, but stressed the need for the process to carry over to the next U.S. president.

Olmert is expected to talk about the Israeli-Palestinian peace efforts with Rice and U.S. President George W. Bush on Wednesday during a weeklong trip to the U.S.

There is speculation it could be Olmert's last visit to the U.S. in his current role as he faces growing pressure back home to step down due to corruption allegations.

U.S. businessman Morris Talansky alleges he gave $150,000 US in cash to Olmert over 15 years, with some of the money going to political campaigning and some used to fund Olmert's luxurious lifestyle. Olmert denies the allegations and says he will resign if indicted.

With files from the Associated Press