The newspaper went further saying that Israeli Prime Minister Benjamin Netanyahu did not agree on Kerry's proposals, adding that it would be difficult to approve them in the parliament.
Palestinian leader Mahmoud Abbas was informed about the meeting but did not participate in it.
The proposals reportedly did not differ from those announced by Kerry in December 2016, which include restoring 1967 borders, two states for two people principle, acknowledgment of Palestinian refugee issue, recognizing Jerusalem as capital of both states, ending the Israeli occupation of Palestinian territories and the end of the conflict between Israel and neighboring Arab states.
On Wednesday, US President Donald Trump at a joint press conference with Netanyahu said Israel should delay building new settlements and announced that he was open to alternatives to the two-state solution of the Israeli-Palestinian peace process.
Relations between Israel and Palestine have been shattered for decades. Palestinians seek diplomatic recognition for their independent state on the territories of the West Bank, including East Jerusalem, which is partially occupied by Israel, and the Gaza Strip.