Palestinian President Mahmoud Abbas rejected Israel's idea of an interim peace agreement at summit on Sunday, a Palestinian negotiator said, insisting on an all-or-nothing approach that virtually ruled out an accord by a January target date.

The latest meeting between Abbas and Israeli Prime Minister Ehud Olmert was their shortest, lasting less than an hour. Neither side pointed to progress.

Olmert entered the meeting in a weakened position after his decision to submit his resignation this month when his party picks a new leader.

Just two days before Abbas arrived for talks at Olmert's residence on Sunday, Israeli police passed through the same entrance to interrogate Olmert for the seventh time in a series of corruption cases.

Abbas, too, is not in a strong political position, having lost control of Gaza to Islamic Hamas militants last year.

Because of Israel's complicated political system, Olmert could still find himself in office next year, even if he resigns this month as promised.

His aides said on Sunday that he hoped the Palestinians would sign a document outlining any agreements reached with Israel before he leaves office.

But Palestinian negotiator Saeb Erekat said Abbas flatly rejected that at the brief summit on Sunday.

"We want an agreement to end the (Israeli) occupation and establish an independent Palestinian state with Jerusalem as its capital," Erekat told The Associated Press.

"President Abbas told Olmert that we will not be part of an interim or shelf agreement," he said. "Either we agree on all issues, or no agreement at all."