New Zealand has pressed on and drafted a new United Nations Security Council resolution on the Middle East, which calls on both Israel and Palestine to make concessions.
The last time the council voted on the conflict was six years ago.
Foreign Minister Murray McCully addressed the Security Council last week to support a UN initiative, and a draft resolution which was shown to journalists in New York.
It called for Israel to stop building settlements in occupied territories and for Palestinians to refrain from taking cases to the International Criminal Court.
The two-page draft also asked that both sides avoid provocative acts and not question the integrity or commitment of the other side.
New Zealand's UN Ambassador Gerard van Bohemen told reporters in New York there was a worrying deterioration on the ground and nothing was happening in the peace process.
The New Zealand resolution went ahead despite reports of opposition from Israel.
Media in Tel Aviv said the Israeli foreign ministry had lodged diplomatic protests against the New Zealand involvement, arguing talks on the ground were the way to go, not UN initiatives.
But these reports had not been confirmed.
The new move followed a wave of shooting and stabbing attacks in and near Jerusalem.
The government denied it had been pressured by Israel to halt the resolution, but the Foreign Affairs Minister's office admitted the matter had been discussed with Israel.
Two Israeli newspapers reported New Zealand was made aware of Israel's position, but went ahead with its draft resolution anyway.