According to Maan news agency Kerry offered President Mahmoud Abbas incentives to return to direct negotiations with Israel.
Kerry offered to release all Palestinian funds and to ensure Israel does not withhold Palestinian tax revenue in the future, and to extend the Palestinian Authority’s jurisdiction, particularly in Area C , according to Maan.
The 60 percent of the West Bank under exclusive Israeli control.
According to AFP, Abbas seeks a return to direct talks, but demanded that Israel must stop illegal settlement building and release Palestinian prisoners.
The last round of direct negotiations collapsed in late 2010.
Kerry is on a 10-day tour, met with Turkish foreign minister Ahmet Davutoglu in Istanbul before meeting with Abbas.
“Turkey can be a key, an important contribution to the process of peace in so many ways,” Kerry told reporters in a joint press conference.
Meanwhile, a rocket was fired from the Gaza Strip on Sunday. The rocket crashed into southern Israel as US Secretary of State John Kerry arrived for talks with Israeli and Palestinian leader.
Following the incident, Israel’s army closed a goods crossing into the Gaza Strip on Monday.Kerry is to hold separate talks on Monday with Palestinian Prime Minister Salam Fayyad and Israeli President Shimon Peres. On Tuesday he meets Israeli Prime Minister Benjamin Netanyahu.