France's Sarkozy to meet Palestinian leader Abbas

Occupied Jerusalem: French President Nicolas Sarkozy is due for talks with Palestinian President Mahmoud Abbas in Bethlehem on Tuesday at the end of a visit to Israel.

The two leaders are scheduled to sign a deal to build an industrial zone in Bethlehem.

Sarkozy on Monday urged Israel to stop building illegal settlements and called on Palestinians to do more to stop terrorism.

"There can be no peace without stopping settlement," Sarkozy said, adding that peace meant creating a Palestinian state that can co-exist with Israel.

Sarkozy flies back to Paris later on Tuesday.