U.S. National Security Advisor Susan Rice will head the delegation to Israel to discuss security issues.
P.M. seeks law to retaliate against Palestine's unwillingness to recognize Israel's Jewish status.
Direct talks had resumed in July after a three-year hiatus but quickly became strained.
The Israeli government decided to suspend American-sponsored peace talks with the Palestinians.
The PLO and Hamas announced an agreement on Wednesday to heal a seven-year schism and form a unity government within five weeks that would prepare for Palestinian elections six months later.
Foreign policy chief slammed Israeli moves as 'not conducive' to talks.
New delay comes after a shooting attack in the West Bank, days before negotiations are set to expire.
Rebuked the secretary of state for blaming Israel for peace talk failure.
Freeze comes in retaliation for the P.A.'s moves to seek statehood from over a dozen international bodies.
U.S.-brokered mediations faltered last week when Israel announced plans for new settlement homes.