Middle East peace talks could "collapse" due to continuing Israeli settlement expansion, a senior Palestinian official warned Tuesday, on the eve of the scheduled resumption of the fragile process.

"Settlement expansion goes against the U.S. administration's pledges and threatens to cause the negotiations' collapse," Yasser Abed Rabbo told Agence France Presse.

Hizbullah Secretary-General Sayyed Hassan Nasrallah is scheduled to make two televised appearances this week to commemorate the end of July 2006 war with Israel , al-Joumhouria newspaper reported on Tuesday.

The first appearance for Nasrallah will be in an interview on Wednesday with the pan-Arab al-Mayadeen TV network.

Israel intercepted and destroyed a rocket fired from Egyptian territory at the Red Sea town of Eilat overnight, Israeli public radio said Tuesday.

A jihadist group had earlier said they fired a Grad rocket at Eilat in retaliation for an alleged Israeli air raid.

U.S. Secretary of State John Kerry urged Palestinians "not to react adversely" Monday to Israel's announcement of more settlement building, and stressed the importance of "getting to the table quickly."

The chief U.S. diplomat, visiting Colombia, said that Israel's announcement on new settlements was "to some degree expected" and he did not think it would become a "speed bump" to a recently relaunched peace process.

The United States said Monday it had expressed "serious concerns" over Israel's decision to allow settlers to continue building on Palestinian land despite new peace talks.

Israel plans to issue tenders for 1,000 new housing units in east Jerusalem and the occupied West Bank, in the face of anger from Palestinian negotiators.

Four out of five Jordanian prisoners held in Israel have ended a three-month hunger strike against prison conditions, Israeli officials said on Monday.

"Four Jordanian prisoners ended their hunger strike of their own volition and without any conditions," a source in the Israeli Prison Service (IPS) told Agence France Presse.

The EU on Monday urged Israelis and Palestinians to avoid any actions that could undermine the resumption of peace talks after a three-year negotiating impasse.

The spokesman for European Union foreign affairs head Catherine Ashton warned that fresh Israeli approvals for settlements in the West Bank announced on Sunday threatened to render peace talks with Palestinians "impossible".

Speaker Nabih Berri condemned the abduction of two Turkish pilots in Beirut on Friday, while questioning the silence over last week's Israeli violation of the Lebanese border, reported As Safir newspaper on Monday.

He told the daily: “Regardless of our position on Turkey's official approach on the kidnapping of the Lebanese pilgrims in Aazaz, the Turkish pilots are innocent and should not be harmed.”

German Foreign Minister Guido Westerwelle met Sunday with Israeli officials on a visit to support nascent peace talks, offering to try to soften a European ban on dealings with Jewish settlements.

"This meeting comes after we relaunched the negotiations between Israel and the Palestinians, and I know that Germany is deeply supportive of the need of direct, bilateral negotiations between Israel and the Palestinians," Israeli Justice Minister and chief negotiator Tzipi Livni said ahead of their Jerusalem meeting.

Israel will release 26 veteran Palestinian prisoners ahead of renewed peace talks set for later this week, an official statement said late Sunday.

Following the government decision the Israel Prisons Service published the names of the 26 selected to be freed ahead of the talks.