Senior diplomatic source says Israel doesn't want to make moves that divert attention from PA's violation of int'l agreements; new approach is stark contrast to previous threats about annulling Oslo, toppling Abbas.

Israel will take a "low profile" approach to the Palestinians' expected bid to upgrade their status at the UN on Thursday so as not to divert attention from the Palestinian Authority's violation of international agreements, a senior diplomatic source said Tuesday.

The source said that if Jerusalem, as some in the international community had feared, would greet the Palestinian move with a decision to build thousands of new housing units in the settlements, then that would become the center of attention, not the Palestinian step. "We will react at the right time," he said.

Israel's position is that the Palestinian resolution seeking observer state status is a clear violation of the underlying principle of the peace process requiring all outstanding issues to be resolved by negotiations.

The source's comments came even as senior Israeli officials were meeting in Washington with Administration officials to try and water down the ramifications of the resolution.

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