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New construction in a Jewish colony in the West Bank, west of Occupied Jerusalem. Image Credit: AFP

Sharm Al Shaikh: Israeli Prime Minister Benjamin Netanyahu and Palestinian leader Mahmoud Abbas began a "serious discussion" on core issues on Tuesday, US envoy George Mitchell said.

"Today the parties have begun a serious discussion on core issues," Mitchell told reporters after Netanyahu and Abbas held around 100 minutes of direct talks in the Egyptian resort of Sharm Al Shaikh.

The core issues are Israel's security, the borders of a future Palestinian state, the fate of Palestinian refugees and the future of Occupied Jerusalem, but Mitchell did not say which of these were discussed.

After the two leaders meet again on Wednesday in Occupied Jerusalem, negotiators for both sides will meet again in "the coming days to continue these negotiations and to lay the groundwork for the next round of talks at the leadership level," Mitchell said.