Prime Minister Benjamin Netanyahu and U.S. Middle East envoy George Mitchell failed to reach an agreement on the issue of West Bank settlements during a meeting Wednesday in London, according to spokespeople for the two men.

However, Netanyahu and Mitchell did make progress in their meeting, the spokespeople said in a joint message afterward, adding that the two agreed on the need to begin meaningful diplomatic negotiations between Israel and the Palestinians with the aim of reaching a regional peace agreement.

The next round of talks was scheduled for the beginning of next week in Washington. Israel will be represented at those talks by the PM's special envoy Yitzhak Molcho and Defense Ministry chief of staff Mike Herzog, who both participated in Wednesday's meeting.

The two will meet with Mitchell to discuss again the U.S. demand that Israel implement a settlement freeze.

Prior to the meeting, Netanyahu said his government …