Clinton is likely to be named to the post by U.S. President-elect Barack Obama, sources say. Already seen as one of Israel's staunchest supporters in the U.S. Senate, Arab diplomats told Sunday's Washington Post they are also wary of her initial support for the Iraq invasion and hawkish statements about Iran, such as her support for a proposal to designate the Iranian Revolutionary Guard as a terrorist organization.

"Nobody has a negative opinion of Senator Clinton, except maybe that her opinions are closer to the neoconservatives than they might wish," Amjad Atallah, who formerly served as a legal adviser for the Palestinian negotiating team in peace talks with the Israelis, told the newspaper.

Others, however, said Clinton is committed to jump-starting efforts to work out a peace deal between the Palestinians and Israel and also supports Obama's stated goal of creating a direct negotiating channel with Iran, despite opposing it in the U.S. Democratic Party primary elections.

"Their arguments were about tactics, not about objectives," Martin Indyk, a former U.S. ambassador to Israel, told the Post.