Palestinian militants in the Gaza Strip fired a rocket at southern Israel that exploded without causing damage or injuries, an Israeli police spokesman told Agence France Presse on Monday.

"It exploded near a kibbutz in the Eshkol region," shortly before midnight on Sunday, said Micky Rosenfeld, adding police were still searching for the remains of what he said was a Qassam rocket.

Israel is set to decide on the release of around 80 long-serving Palestinian prisoners ahead of renewed peace talks, an Israeli official said on Monday.

U.S. Secretary of State John Kerry announced on Friday that Israeli and Palestinian negotiators had agreed to meet to prepare a resumption of direct peace talks, stalled since 2010.

Iran on Sunday voiced opposition to a U.S.-mediated resumption of peace talks between Israel and the Palestinians, predicting the Jewish state would never agree to withdraw from occupied Arab lands.

Tehran "along with Palestinian groups expresses its opposition to the proposed plan and it's certain that the occupying Zionist regime will utterly not agree to withdraw from the occupied lands," foreign ministry spokesman Abbas Araqchi said, quoted by Iranian media.

The Arab League said on Sunday it supported the Palestinian stance on the announcement of resumed peace talks with Israel, but that it was skeptical of Israeli intentions.

The League "is forming a political support network for the Palestinian side in case it accepts to go to the negotiations with the Israeli side," Mohammed Sabih, deputy secretary general for Palestinian affairs and occupied Arab territories, told reporters.

Israeli Prime Minister Benjamin Netanyahu warned ministers Sunday that renewed peace talks with the Palestinians will be tough, and said any draft treaty would be put to a referendum.

U.S. Secretary of State John Kerry on Friday said Israeli and Palestinian negotiators had agreed to meet to prepare a resumption of direct peace talks, stalled since 2010.

Two hardline ministers in Israel's rightwing government came out swinging on Sunday against any possible slowdown in Jewish settlement building as part of a deal to kickstart talks with the Palestinians.

Their comments come after U.S. Secretary of State John Kerry on Friday said Israeli and Palestinian negotiators had agreed to meet to pave the way for a resumption of direct peace talks, stalled for close to three years.

Renewing negotiations with the Palestinians is "vital" for Israel, Prime Minister Benjamin Netanyahu said Saturday, after both sides agreed to lay the groundwork to resume talks frozen for three years.

"The resumption of the peace process is a vital strategic interest of the state of Israel," he said in a statement.

U.S. Secretary of State John Kerry's efforts have led to an agreement in principle to resume Israeli-Palestinian peace talks but the devil remains in the details of the negotiating terms.

"I am pleased to announce that we have reached an agreement that establishes a basis for resuming direct final status negotiations between the Palestinians and the Israelis," he told reporters in Amman late Friday.

The six-nation Gulf Cooperation Council welcomed on Saturday EU plans to ban its 28 members from dealing with Jewish settlements, hoping the move would push forward peace efforts.

The guidelines, published in the EU's Official Journal Friday, forbid EU member states from funding or dealing with entities in territories occupied by the Jewish state in 1967.

Israel announced on Saturday it will release some Palestinian prisoners as a "gesture", after the two sides agreed to lay the groundwork to resume peace negotiations frozen for three years.

Some of those to be released had been held in prisons for decades, Israeli Intelligence Minister Yuval Steinitz said.