JERUSALEM, March 27 (Reuters) - Palestinian President Mahmoud Abbas and Israeli Prime Minister Ehud Olmert have agreed to hold regular meetings that could include discussions about the formation of a Palestinian state, U.S. Secretary of State Condoleezza Rice said on Tuesday.

Rice said the discussions would focus on security issues initially. They would be held every two weeks.

"The parties will also begin to discuss the development of a political horizon consistent with the establishment of a Palestinian state in accordance with the 'road map'," Rice told a news conference.

"We are not yet at final status negotiations. These are initial discussions to build confidence between parties," Rice said.

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