JERUSALEM (AP) – Israeli Prime Minister Ehud Olmert agreed Monday to resume open-ended, face-to-face talks with Palestinian President Mahmoud Abbas in a possible step toward restarting substantive peace talks, an American official said.

Messrs. Olmert and Abbas will initially hold low-key “confidence-building” sessions, the official said. Israel has refused substantive talks since Mr. Abbas, a moderate leader whom Israel has called a partner for peace, joined Hamas militants in a coalition government this month.

>The talks between the Palestinian and Israeli leaders will be open to all issues, said the American official, speaking on condition of anonymity ahead of a planned address by Secretary of State Rice on Tuesday.

Mr. Olmert’s agreement to new talks was a small step, since he had held such sessions with Mr. Abbas before the Hamas deal, but it still was seen as a sign of fresh and surprising progress toward peace talks despite the complication posed by Hamas.

When Mr. Abbas and Hamas formed their coalition government last week, Mr. Olmert said he would talk about humanitarian and other concerns if need be, but he ruled out more detailed discussions or negotiations.

Israel, the United States and the European Union consider Hamas a terrorist group.

Ms. Rice has shuttled between Israeli, Palestinian and Arab leaders this week, trying to rally greater Arab support for eventual peace negotiations, and to persuade Israel to be more flexible in its dealings with Abbas.