U.S. Secretary of State Hillary Clinton is urging Israelis and Palestinians to relaunch peace talks in the hopes of achieving a two-state solution.

U.S. Secretary of State Hillary Clinton arrives at Vnukovo airport near Moscow, Russia, on Thursday. (Ivan Sekretarev/Associated Press)

She also described her country's rift with Israel over a Jerusalem construction project as a challenge and said the U.S. is still committed to brokering a peace deal between the two groups.

Clinton made the remarks on Thursday in Moscow, where she is participating in a meeting of the Quartet of Middle East peace mediators — the U.S., Russia, the EU and the United Nations.

Hopes for talks between Israelis and Palestinians faded last week after Israel announced the construction of 1,600 apartments for Jews in disputed east Jerusalem during an official visit by U.S. Vice President Joe Biden.

'No other alternative': UN

Also in Moscow on Thursday, the UN and Russia vowed to resuscitate the peace talks.

UN Secretary General Ban Ki-moon, left, and Russian Foreign Minister Sergey Lavrov take part in Moscow discussions about the Israeli-Palestinian peace process. (Misha Japaridze/Associated Press)

"There is no other alternative to direct peace talks," U.N Secretary General Ban Ki-moon said after a meeting with Foreign Minister Sergey Lavrov.

Lavrov said that the main goal of the mediators is to persuade Israel and the Palestinians to resume talks.

He said the Quartet would issue a strong joint statement when their Moscow meeting concludes Friday.

"Quartet members are fully committed to end their meeting with a very concrete, clear document that will confirm all previous decisions of the world community about conditions and parameters of direct talks between Israel and Palestinians," Lavrov said.

UN signs on to Russian alliance

The UN chief on Thursday also signed a co-operation agreement with a Russia-led security alliance of ex-Soviet nations, called the Collective Security Treaty Organization, which some see as a counterbalance to NATO.

"This is a very important part of UN efforts to promote co-operation with regional organizations," he said adding that the areas of co-operation could include border security, drug trafficking and organized crime.

The Kremlin was anxious to gain the UN's recognition of the Moscow-dominated alliance that includes Russia and six other former Soviet republics — Armenia, Belarus and four Central Asian nations.

Russia created the alliance in 2002 as part of an effort to regain some of its influence among former Soviet republics and limit the influence of NATO and Western powers in what Moscow sees as its backyard.

Lavrov said the alliance wants to work more closely with the UN on issues related to Afghanistan. He said the trade in Afghan heroin has become "a threat to world stability."