Tzipi Livni leads the Israeli negotiating team at the talks with the Palestinians on a blueprint for a U.S.-sponsored multilateral peace conference to be held in November or December in Annapolis, Maryland.
The Annapolis conference is expected to result in a framework agreement on peace efforts.
"There is no tension, there is a good atmosphere at the meetings, in fact, but yes, there are problems," Livni said.
The Israeli foreign minister also said the implementation of any peace accords would become possible only after the Palestinian leadership fulfilled its commitment to put an end to terrorism.
Four years ago, Russia, the United Nations, the European Union and the United States proposed a roadmap for peace intended to settle the Israeli-Palestinian conflict. However, the roadmap has stalled over the failure of both Israelis and Palestinians to fulfill their obligations under the deal.
The Israelis and the Palestinians are seen to display different approaches towards drafting a joint document for the Annapolis peace conference.
The Israelis want the document to set out broad settlement principles to have more flexibility, while the Palestinians, who are seeking the creation of an independent Palestinian state, are pushing for specific terms and conditions.
The Palestinians want a detailed agreement specifying each party's commitment concerning key points, such as future borders, the status of Jerusalem, Palestinian refugees, and Israeli settlements, while the Israelis are looking for a more general guideline.
