By Aziz El-Kaissouni

CAIRO, Nov 23 (Reuters) - Arab League foreign ministers will meet at the League's headquarters in Cairo on Friday for talks aimed at forging a common position ahead of a U.S.-sponsored peace conference next week.

The meeting brings together foreign ministers from the contact group delegated by the League to follow up on the Arabs' 2002 peace initiative.

Friday's League meeting could see Saudi Arabia announce whether or not it will join the conference in Annapolis, Maryland, which the U.S. hopes will launch negotiations to end the six-decade-old Israeli-Palestinian conflict.

Saudi Arabia has not ruled out the possibility of taking part, according to comments by Crown Prince Sultan carried on state television.

Arab and Western diplomats say Riyadh may decide at the last moment to send its foreign minister, but is more likely to send low-level representatives.

The United States has invited about 40 countries, including Saudi Arabia and Syria which have no relations with the Jewish state.

Saudi Arabian participation could bolster Palestinian President Mahmoud Abbas's ability to reach an agreement and help Israeli Prime Minister Ehud Olmert sell it to Israelis, by holding out the prospect of wider peace with the Arab world.

Egyptian President Hosni Mubarak held talks on Thursday with Abbas and Jordan's King Abdullah to coordinate positions ahead of the conference.

Egypt, a key U.S. ally and one of only two Arab states to have signed a peace treaty with Israel, has offered support for next week's meeting despite initial reservations.

It remains unclear how far the peace conference will go to tackle the core issues -- borders, security, settlements, the status of Jerusalem and the fate of Palestinian refugees -- that have defeated previous efforts to end the conflict.

Some Arab countries might not attend unless they see sufficient progress has been made in preparatory talks between the Israelis and Palestinians, diplomats say.

Israeli and Palestinian negotiators have been struggling to hammer out a joint document before the conference that would address core issues in general terms, and Egypt said it was unclear whether a document would be ready by Tuesday.

(Editing by Andrew Roche)

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