Kerry is expected to present his ideas for the contours of an Israeli-Palestinian peace deal soon, but it appears increasingly unlikely he can get Abbas and Netanyahu to accept such a framework by an April 29 deadline.
Abbas is meeting with U.S. President Barack Obama at the White House on March 17, as part of U.S. efforts to press both sides. Netanyahu met with Obama earlier this week.
The current round of talks began in late July, but was plagued from the start by disagreement between Abbas and Netanyahu on the ground rules. The Palestinians want a state in the West Bank, Gaza Strip and east Jerusalem, lands Israel captured in 1967, and said talks about that state should use the 1967 lines as a starting point, a position backed by the U.S. but rejected by Netanyahu.
In previous negotiations with Netanyahu's predecessors, the Palestinians have said that they are willing to accept minor land swaps to enable Israel to keep some of the dozens of Jewish settlements built on occupied land since 1967. Most of the international community deems those settlements illegal under international law.
Netanyahu never presented a detailed border proposal, but said that Israel wants to keep east Jerusalem, maintain a long-term military presence in the West Bank's Jordan Valley and annex unspecified "settlement blocs."
Netanyahu accelerated settlement construction during the talks, with housing starts in settlements more than doubling in 2013, compared to the year before.
He also said the Palestinians must recognize Israel as a Jewish state, a demand that appears to have U.S. support, based on recent speeches by Kerry and Obama.
Abbas said in his speech late Thursday that he would not compromise on a demand for a Palestinian capital in east Jerusalem.
Earlier Thursday, Abbas' aide Mohammed Ishtayeh said he believes the Kerry proposal will only refer to such a capital "in Jerusalem," raising fears the Palestinians will be asked to make do with a small part of the eastern sector.