WASHINGTON — Israel and the Palestinians agreed to resume long-stalled direct negotiations in Washington early next month, Secretary of State Hillary Rodham Clinton said today, with a goal of two sovereign states existing side by side in peace.

The breakthrough marks a small but important step toward easing tensions in the Middle East. Clinton made the announcement at the State Department with special Mideast peace envoy George Mitchell at her side.

"As we move forward, it is important that actions by all sides help to advance our effort, not hinder it," Clinton said. "There have been difficulties in the past; there will be difficulties ahead. Without a doubt, we will hit more obstacles. The enemies of peace will keep trying to defeat us and to derail these talks. But I ask the parties to persevere."

Clinton said the face-to-face talks are to begin Sept. 2. She said the hope is that a comprehensive peace agreement can be reached within one year.

By The Associated Press