Israeli Prime Minister Benjamin Netanyahu said Tuesday evening upon returning from Egypt that he is encouraged by Cairo's commitment and that it is time to restart the stalled peace talks with the Palestinians.

The premier, who met with Egyptian President Hosni Mubarak in Cairo earlier in the day over the Israeli-Palestinian peace impasse and other issues, was quoted by local news service Ynet as saying at a meeting with senior members of his Likud Party that he "is very encouraged by President Mubarak's commitment to the peace process with the Palestinians."

"I hope to see such willingness on the part of the Palestinian (National) Authority as well. The time has come to jumpstart the diplomacy talks. The time has come to renew the peace process. The time has come for all of us to join in and do it," Netanyahu added.

Since Netanyahu announced in late November a 10-month moratorium on new construction projects in West Bank settlements, the Jewish state has stepped up its calls for an early resumption of the peace process, urging the Palestinians to accept what Israel dubs a rare compromise and return to the negotiation table.

Yet the Palestinians has so far refused, accusing the Netanyahu administration of not being genuine, as the temporary freeze does not include the some 3,000 settlement housing units already approved or construction activities in East Jerusalem, which the Palestinians want to be the capital of their future state.

As the first Arab country to make peace with Israel, Egypt has been acting as a key mediator for the Israeli-Palestinian conflict. It is also trying to broker a prisoner swap deal between Israel and the Palestinian Hamas movement, an issue Netanyahu and Mubarak also discussed on Tuesday.

Following Netanyahu's trip to Cairo, his office said that the talks between the two leaders "was held with a friendly atmosphere and was thorough." Egyptian Foreign Minister Ahmed Abul Gheit also said that he was encouraged by Netanyahu's visit and that the Israeli leader was serious about restarting peace talks with the Palestinians.

The unwieldy Israeli-Palestinian peace process has bogged down for over a year, despite mounting mediation efforts by the United States, Egypt and some other members of the international community. In the latest blow to the peace-making efforts, Israel on Monday announced plans to build nearly 700 new homes in East Jerusalem.