Rice and Merkel, who holds the rotating EU presidency, told reporters before their meeting that there was a rare but tangible chance for peace in the Middle East which could have a positive influence throughout the region.

"There is no doubt that there could be a very important effect on the entire region if we are able to make progress on Middle East peace," said Rice, who later left for London to brief British Prime Minister Tony Blair.

Rice and German Foreign Minister Frank-Walter Steinmeier announced late Wednesday that representatives from the United Nations, the United States, Russia and the European Union would meet in Washington next month to discuss ways to end the Middle East conflict.

Rice said Thursday that the meeting would probably take place Feb. 2.

The chief US diplomat came to Berlin after a six-country Middle East tour during which she announced she would hold a summit with Israeli Prime Minister Ehud Olmert and Palestinian president Mahmud Abbas within a month.

Rice touts Mid-East peace summit

Rice said it would take "a few weeks" to organize the summit but added Thursday that both the Israelis and Palestinians were ready to work toward a lasting solution.

"I did find the parties to be very desirous of accelerating progress on the road map, of extending the momentum that has been achieved in the meeting between Prime Minister Olmert and President Abbas," Rice said, referring to preliminary talks held last month.

"I believe that the whole region is looking for a way to accelerate progress and to drag toward the establishment of a Palestinian state and so this is a very important time."

Germany, as the current EU president, has made revitalizing the quartet one of its priorities. It held its last full meeting in September.

Merkel pleased with US movement

Merkel made the appeal this month in Washington to US President George W. Bush, who agreed to send Rice to the Middle East.

"We have the impression that there is movement on the issue of the Israeli-Palestinian conflict," Merkel said Thursday.

"We have a common political interest in finding a solution to this conflict and the European Union would like to make a contribution within the framework of the quartet," the chancellor added. "We know that resolving this conflict or at least making progress would also have an effect on all the other regional conflicts."

Rice said late Wednesday that she hoped the international partners would help both sides to move forward on the stalled roadmap, the peace plan that the quartet drew up in 2003 with the aim of establishing a viable Palestinian state living peacefully alongside Israel.

"It has the backing of Israelis and Palestinians, but it also has the backing of the entire international system," Rice said. "I would expect that as we try to accelerate progress on the roadmap, the quartet would try and lend assistance to the parties as they try to do it."

North Korea, Iran also on Berlin agenda

In Berlin, Rice also met Assistant Secretary of State Christopher Hill, the top US envoy to six-party talks on North Korea's nuclear weapons, who held discussions with the North's negotiator Kim Kye-gwan in the German capital.

She said she hoped the six-way negotiations would resume soon and that Hill's talks in Germany would pave the way for "a more favorable atmosphere" in the full discussions.

Rice also briefed Merkel on Iran's nuclear ambitions, although Wednesday she bluntly reiterated the US administration's refusal to engage in bilateral talks with Tehran until it stops enriching uranium.

"This is not the time to break a longstanding American policy of not engaging with the Iranians bilaterally," she said. "It's just not the time."

Germany, which with EU partners Britain and France spearheaded negotiations with Iran on its nuclear program, has urged Washington to open a dialogue with the Islamic republic.