Washington  - US President George W Bush and Israeli Prime Minister Ehud Olmert met in Washington on Monday pledging to move forward on the peace process as both prepare to leave office.

"I believe that vision is alive and needs to be worked on," Bush said of the peace negotiations that were relaunched in November 2007 during an international conference he hosted in Annapolis, Maryland.

Olmert and Palestinian President Mahmoud Abbas agreed at the gathering to complete final settlement negotiations by the end of this year, although the White House acknowledged earlier this month that the goal is no longer reachable.

"A two-state solution is the only possible way to resolve the conflict in the Middle East," Olmert said at the low-key meeting.

Olmert is facing corruption-related charges and announced his resignation. The political situation in Israel has slowed direct negotations with the Palestinians.

Foreign Minister Tzipi Livni has been taped to succeed Olmert as head of the Kadima party, but new elections were scheduled for February after she was unable to form a ruling coalition. Olmert will stay in the job until the elections.

Bush will hand power to president-elect Barack Obama on January 20. (dpa)