"It is not something we would support," Psaki told reporters. Earlier, Israel's foreign minister described a draft resolution that calls for a peace deal within a year and ending the Israeli presence in the Palestinian territories by 2017 as a gimmick.
On Wednesday night, Jordan formally submitted to the United Nations Security Council on a draft resolution calling for peace between Israel and the Palestinians within one year and an end to Israel's "occupation" of the West Bank by the end of 2017.
Palestinians, however, sought to avoid a clash with the United States by saying they were open to negotiations on the text. Some drafts formally submitted have never been voted.
On Thursday, Palestinian President Mahmoud Abbas said he supports further negotiations over the draft resolution. Diplomats say negotiations on the text could take days or weeks. Jordan's UN envoy Dina Kawar said she hoped the council could reach a unanimous decision on the resolution.
The resolution "comes in the context of our political battle to liberate the land and end the occupation of the Palestinian state," Abbas told a Palestinian leadership meeting.
"We will continue in our consultations with the brothers and friends through deliberations, which will take place in the United Nations," he added.
Nine votes are needed to adopt a resolution, which would then force the United States, a close ally of Israel, to decide whether to veto it.
An earlier Palestinian draft informally circulated to the council in October called for an "end to Israeli occupation of Palestinian territory" by November 2016, but the United States and others found this text unacceptable.
France, Britain and Germany are also drafting a resolution, which French Foreign Minister Laurent Fabius said would propose concluding peace talks in two years. Other parameters for ending the conflict would also be set, diplomats said. The submitted Palestinian draft appears to reflect some European ideas.
Reuters, AFP and the Associated Press contributed to this report.