Israeli Prime Minister Benjamin Netanyahu said Thursday that his government will not freeze settlements in Jerusalem, reported local daily Ha'aretz.

"There will be no freeze (of settlements) in Jerusalem," Netanyahu was quoted by Ha'aretz as saying.

U.S. special envoy to the Middle East George Mitchell, who arrived in the region hours ago to give a push to the stalled Israeli-Palestinian negotiations, is slated to meet with Israeli President Shimon Peres and Defense Minister Ehud Barak on Friday.

Addressing Israeli-U.S. ties, Netanyahu said "the United States doesn't agree with us on every detail. There are ups and downs, but we have a very strong relationship that helps us overcome these disagreements."

The relations between the two traditional allies became strained after Israel gave green light to a 1,600-housing-unit plan in East Jerusalem during U.S. Vice President Joe Biden's visit last month.

The decision threatened to nip the newly-resumed Israeli- Palestinian peace process in the bud, with enraged Palestinians vowing not to enter talks before Israel cancels the building program.

U.S. President Barack Obama's administration, whose peace efforts were embarrassed by the building plan, bombarded Israel with harsh criticisms, and has been pressing Israel to promote negotiations with the Palestinians by taking several concrete steps, which is topped by a building freeze in East Jerusalem.