The newspaper quotes a senior source as saying that Trump and his team are still studying the new initiative, and he is expected to announce it within a month.
According to the source, the peace initiative will set a time limit for talks, during which the sides will negotiate each of the core issue separately.
"Trump wants a separate agreement on each issue and, in that way, they'll eventually reach the big deal, which is a final-status peace agreement between the sides," the source told Al Hayat.
Meanwhile, Abbas's senior economic advisor Mohammad Mustafa said the Palestinian asked Trump for significant economic changes beyond the economic relief measures Israel has proposed. Among other things, the Palestinians have asked for economic freedom in the Israeli-controlled Area C of the West Bank and changes to the 1994 Paris Protocol, which is an agreement on economic relations between Israel and the PLO.