John Kerry said another meeting between the two sides would be held in either Israel or the Palestinian territories the next two weeks.
This, he said, would begin the process of formal negotiations.
Mr Kerry said "all issues" would be on the table for negotiation.
He was speaking at a news briefing after two days of talks between the two sides in Washington DC.
Earlier, US President Barack Obama met the Israeli and Palestinian negotiators - Israeli Justice Minister Tzipi Livni and lead Palestinian negotiator Saeb Erekat - at the White House.
BBC News - Israeli-Palestinian peace talks: Nine-month deal goal:
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