U.S. intended to allow passage of U.N. draft critical of Israel

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Egypt, which had proposed the draft resolution, abruptly put off a vote that had been scheduled for Thursday afternoon and diplomats said Cairo had acted under pressure from Israel and to avoid alienating U.S. President-elect Donald Trump.

Israeli Prime Minister Benjamin Netanyahu (R) stands next to Donald Trump during their meeting in New York, September 25, 2016. Kobi Gideon/Government Press Office (GPO)/File Handout via REUTERS

The two Western officials said that U.S. President Barack Obama had intended to abstain from the vote, a relatively rare step by the United States to register criticism of the building on occupied land that the Palestinians want for a state.

U.S. officials have voiced growing fears that a "two-state" solution is imperiled by Israeli settlement building and so have been more willing to voice open criticism of it, including, the two officials said, via Thursday's planned vote.

In a sign that they feared Obama might withdraw the United States' long-standing diplomatic protection for Israel, Trump and Israeli Prime Minister Benjamin Netanyahu urged the White House to veto the draft resolution.

President Abdel Fattah al-Sisi of Egypt, which in 1979 became the first Arab nation to make peace with Israel, called Trump on Thursday, a Trump transition official said, saying they spoke broadly about laying the ground for Middle East peace.

Sisi's office said the two leaders spoke.

"The presidents agreed on the importance of affording the new U.S. administration the full chance to deal with all dimensions of the Palestinian case with a view of achieving a full and final settlement," said presidency spokesman Alaa Yousef.

The resolution would demand Israel "immediately and completely cease all settlement activities in the occupied Palestinian territory, including East Jerusalem" and it said the establishment of settlements by Israel has "no legal validity and constitutes a flagrant violation under international law".

Egypt is currently a Security Council member and worked with the Palestinians to draft the text.