The Palestinians and the Israelis are closer to a peace deal than they have been in years, US Secretary of State John Kerry said on Friday wrapping up his latest visit.

The Palestinians and the Israelis are closer to a peace deal than they have been in years, US Secretary of State John Kerry said on Friday wrapping up his latest visit.

"I believe we are closer than we have been in years to bringing about the peace and the prosperity and the security that all of the people of this region deserve," he told reporters.

His remarks were made after a day-and-a-half of talks with Palestinian and Israeli officials aimed at driving forward the direct negotiations which began in late July but have made little apparent progress as they approach the halfway point.