Washington  - Israeli Foreign Minister Avigdor Lieberman said Thursday there will not be a complete freeze on settlement expansions, rebuffing a key demand by the United States for moving forward on the Mideast peace process.

Lieberman said in Washington that settlements in the West Bank must be expanded to accommodate "natural growth" and reiterated claims that the Bush administration had assured Israel that position was acceptable to Washington.

"In every place around the world, babies are born and people get married, some pass away, and so we cannot accept this vision about absolutely, completely freezing of settlements," Lieberman said after meeting with Clinton at the State Department. "I think that we must keep the natural growth."

US President Barack Obama and Clinton have emphasized that Israel must end settlement expansion under the international peace plan in what has been a growing dispute between the two sides over resuming peace negotiations with the Palestinians.

"We want to see a stop to the settlements," Clinton said. "We think that is an important and essential part of pursuing the efforts leading to a comprehensive peace agreement and the creation of a Palestinian state."

The meeting took place two days after Israeli Prime Minister Benjamin Netanyahu outlined his plans for approaching the peace process. In a concession to Washington, Netanyahu said he would accept the creation of a Palestinian state but with conditions that include a Palestinian recognition of Israel as a Jewish state.

Clinton also repeated US assertions that there were no secret deals with the Israelis regarding settlement expansion.

"In looking at the history of the Bush administration, there were no informal or oral enforceable agreements," Clinton said. (dpa)