London, Sept 3 (ZEENEWS.COM) Israeli Vice-Prime Minister Shimon Peres has said his country is likely to resume peace talks with the Palestinian Authority next year.

"We will start negotiations with the Palestinians in the very near future," Peres told the Financial Times newspaper, hinting the process could be set in motion by early next year.

The Vice-Prime Minister however doubted that the UN or the Arab League could play a significant role in mediating peace in the region.

Peres is in favour of creation of an independent Palestinian state and at one point referred to Palestine as a "country", the business daily stated.

The Israeli leader was in Italy last week and made this comments on the sidelines of the Ambrosetti workshop. Peres also met Italian Premier Romano Prodi to thank him for agreeing to provide 2,500 troops for the un forces in Lebanon.