LONDON (Reuters) - Israel urged the Palestinian leadership on Wednesday to set aside a diplomatic campaign to widen the stalled Middle East peace process and get back instead to direct talks. There is no doubt that the (peace) process is currently in an impasse, Israeli government spokesman Mark Regev told BBC Radio in a London broadcast. Its clear unfortunately that the Palestinian leadership has adopted a policy where they refuse to engage directly with Israel . And I would ask them; 'How do you expect to make peace with Israel unless youre willing to talk to Israel ? Regev said it was a mirage to think there was any alternative to a negotiated peace agreement. But chief Palestinian negotiator Saeb Erekat said talks with Israel , which stalled three months ago with the expiry of an Israeli moratorium on settlement building in the occupied West Bank, were at a dead-end, and other options would be pursued. Among them is a diplomatic drive to win recognition of Palestinian statehood from as many U.N. member states as possible.