TEL AVIV-Israel and the Palestinians accepted on Friday an invitation by the United States and other powers to restart direct talks on September 2 in a modest step toward forging a deal within 12 months to create a Palestinian state and peacefully end one of the world's most intractable conflicts. US Secretary of State Hillary Clinton said Israeli Prime Minister Benjamin Netanyahu and Palestinian President Mahmoud Abbas will meet with President Barack Obama on September 1, before formally resuming direct negotiations the following day at the State Department in Washington. "There have been difficulties in the past, there will be difficulties ahead," Clinton said in a statement. Clinton added that Egyptian President Hosni Mubarak and Jordan's King Abdullah also were invited to the talks, which will mark the first direct negotiations between Israel and the Palestinians in 20 months. "I ask the parties to persevere, to keep moving forward even through difficult times and to continue working to achieve a just and lasting peace in the region," Clinton said. Clinton's announcement was echoed by the Quartet of Mideast peace mediators -- the United States, Russia, the European Union and the United Nations -- which issued its own invitation to the talks and underscored that a deal could be reached within a year. Netanyahu quickly accepted the US invitation and said reaching a deal would be possible but difficult. "We are coming to the talks with a genuine desire to reach a peace agreement between the two peoples that will protect Israel's national security interests, foremost of which is security," a statement from his office said. After a meeting in the West Bank city of Ramallah, the Palestinian leadership announced its acceptance of the invitation for face-to-face peace talks with Israel.