Israel on Friday raised the possibility of a compromise just ahead of the scheduled ending of curbs on settlement construction that threatened to derail three-week-old Middle East peace talks. Just two days before the conclusion of the 10-month partial moratorium on settlement construction in the occupied West Bank, the government indicated it was willing to cut a deal acceptable to the United States and the Palestinians, who both want an extension of the restrictions. "Israel is prepared to reach a compromise acceptable to all parties to consider extending the freeze on construction, provided that the freeze will not be total," a senior government official said.