JERUSALEM, August 28 (RIA Novosti) - Israeli Prime Minister Ehud Olmert and Palestinian President Mahmoud Abbas discussed Tuesday in Jerusalem the establishment of an independent Palestinian state, an Israeli government spokesman said.

The talks were held in an attempt to reach a tentative agreement on the fundamental and most controversial issues of the settlement process, including territorial borders, the future status of Jerusalem, Palestinian refugees and Jewish settlements located in disputed Palestinian territories.

The initiative comes ahead of a U.S.-sponsored regional forum, to be held in November 2007.

The spokesman said the two leaders spoke in one-on-one meeting that lasted for one-and-a-half hours, addressing fundamental issues concerning the establishment of an independent Palestinian state, security and economic cooperation, although he did not reveal any details.

Olmert and Abbas's last meeting was held in early August in the city of Jericho, in the West Bank.