A Palestinian negotiator said on Wednesday any peace deal with Israel would be delayed if a police investigation of Prime Minister Ehud Olmert forced his resignation and a new election was held, Reuters reported. Saeb Erekat described the case as an internal Israeli matter but said Palestinians were following developments closely. "If they decide to hold a new election then we will be late another year. If (Israeli Foreign Minister Tzipi) Livni takes over, we will remain the same," Erekat said, referring to Olmert's designated deputy. The United States, brokering talks on Palestinian statehood that have shown little visible progress since they began nearly six months ago, hopes a deal can be sealed before President George W. Bush leaves office in January.