Mid-East peace deal 'in nine months' says John Kerry

US Secretary of State John Kerry has said Israeli and Palestinian negotiators have agreed to work towards a final Middle East peace agreement over the next nine months.

He was speaking after a second day of talks with the Israeli chief negotiator Tzipi Livni and lead Palestinian negotiator Saeb Erekat.

Speaking to reporters in Washington DC, Mr Kerry said both sides had agreed that everything was up for negotiation.