The Israeli prime minister, Binyamin Netenyahu, appears to have made some concessions to US demands, opening the way to resume peace talks.

The Guardian reports that Netanyahu spoke on the phone to Hillary Clinton, the US secretary of state, agreeing to various demands that she set out on Friday amid a deepening diplomatic rift.

In a statement, he echoed Clinton's proposal of "confidence-building steps" to make it easier for Palestinians to rejoin talks.

Netenyahu did not concede to the US demanded for a freeze on the construction of Jewish settlements in Ramat Shlomo, in East Jerusalem - a key trigger for the current darkening of relations.

However, it has been reported that Israeli diplomats have given private guarantees that the work will be postponed for several years, and that there will be a temporary freeze on any new settlements.

The climbdown is likely to be embarrassing for Netenyahu, who said just days ago that no Israeli government for 42 years had promised not to build in East Jerusalem. He will face criticism from the right wing of his coalition.