Israeli Prime Minister Benjamin Netanyahu and his Defence Minister Benny Gantz yesterday failed to reach an agreement on the annexation plan with US Ambassador to Israel David Friedman, Quds Press reported.
A source, who attended yesterday's meeting said: "No progress was reached," referring to the discussions about the annexation plan.
This was the second meeting on the issue. The first was held on Sunday with no deal being made then.
The sources, Quds Press said, spoke to Israeli Army Radio without revealing his name because he was not authorised to speak to the media.
Netanyahu, Gantz or Friedman did not comment on the meetings or the subsequent reports.
The Arabic news site reported an Israeli Likud minister saying: "Netanyahu insists on going ahead with this plan."
The Israeli government is planning to annex the Jordan Valley and settlements in the West Bank on 1 July.
Palestinian estimates indicate that the Israeli annexation plan will cover more than 30 per cent of the West Bank.
In response to his announcement, the Palestinian Authority said that it is no longer bound by all agreements with Israel, including those relating to security.