Quoting US negotiators involved in the talks, the radio said the United States was hoping to obtain a freeze on construction in isolated settlements outside the major West Bank blocs, which Israel hopes to retain in any peace deal.
A settlement bloc is an area where clusters of settlements have been established in relatively close proximity to one another, in which the majority of the West Bank's 367,000 settlers currently live, AFP reported.
Kerry, who is to meet Palestinian leader Mahmud Abbas in Paris on Wednesday night, is currently working on a framework that would allow the ongoing talks to be extended beyond an April deadline until the end of the year.
Launched in July 2013, the talks have shown very little visible progress since they began, with both sides at loggerheads over a series of issues, including Israel's ongoing settlement construction on land which the Palestinians want for a future state.
The framework agreement is reportedly to be made public early next month when Israeli Prime Minister Benjamin Netanyahu meets US President Barack Obama at the White House.
The Palestinians have been infuriated by the ongoing construction, which has seen Israel advance plans for more than 11,700 new settler homes since the talks started, and they have baulked at any talk of extending the nine-month negotiating period.