Israel won't free the final batch of prisoners due for release as part of US-brokered peace talks, Palestinian official Jibril Rajub said on Friday.

"The Israeli government has informed us through the US mediator that it will not abide with its commitment to release the fourth batch of Palestinian prisoners scheduled for Saturday March 29," said Mr Rajub.

Under the deal which relaunched the talks in July, Israel pledged that it would release 104 Arab prisoners held in Israeli jails since before the 1993 Oslo peace accords in exchange for the Palestinians not pressing their statehood claims at the United Nations.

Israel has so far freed 78 prisoners in three batches but had warned they would block the final release if the Palestinians refused to extend the struggling talks beyond their April 29 deadline.

There has been little or no progress in the talks, which have been intermittently stalled by Israel's insistence on continuing to announce illegal settlement extensions in the West Bank and east Jerusalem.

Mr Rajub called the Israeli refusal a "slap in the face of the US administration and its efforts" and said that the Palestinians would therefore resume their international diplomatic offensive.

And Palestinian Deputy Minister for Prisoner Affairs Ziad Abu Ein said the delay was a major violation of the deal.

The Palestinian Authority was prepared to appeal to international bodies and UN agencies, including the International Criminal Court, if Israel does not release the prisoners by the end of March, Fatah central committee member Mahmoud al-Aloul said.

The talks have been teetering on the brink of collapse, with Washington trying to establish a framework for continued negotiations until the end of the year without success.

US Secretary of State John Kerry met Palestinian President Mahmoud Abbas in Amman, Jordan, on Wednesday and US special envoy Martin Indyk met the Palestinian leader in Ramallah on Thursday for talks later described by Palestinian authorities as "fruitless."