Talks are under way among several Arab states on measures that would reward Israel if Benjamin Netanyahu, the prime minister, commits to a total freeze on the expansion of Jewish settlement as part of a comprehensive American Middle East peace plan.

According to people familiar with the talks, several Arab states are discussing a plan of action that could include stepped up contacts with the Jewish state, telecommunications links and airline access if the US can secure a genuine Israeli adherence to a complete settlements freeze on occupied Palestinian land.