RIYADH, Oct 21 (Reuters) - Saudi Foreign Minister Saud al-Faisal said on Tuesday he hoped that Israel's next government would follow the lead of President Shimon Peres, who last month called for a revival of Arab-Israeli peace initiatives.

Peres, speaking at the United Nations, called on Saudi King Abdullah to "further" a dormant land-for-peace plan endorsed by the Arab League six years ago, and said Israel would attend any venue to end the decades-long conflict with its Arab neighbours.

The Saudi minister told a news conference in Riyadh that the interest in the plan voiced by the Israeli head of state, whose powers are largely ceremonial, was "better late than never".

"We hope the new prime minister will use the same language," al-Faisal added.

Israel's prime minister-designate is Foreign Minister Tzipi Livni, who was given extra time by Peres this week to form Israel's next coalition government.

She has vowed to pursue U.S.-sponsored peace negotiations with Palestinian President Mahmoud Abbas that were launched a year ago by outgoing Israeli Prime Minister Ehud Olmert.

Livni's main coalition partner, Defence Minister Ehud Barak, also said last week that Israeli leaders were seriously reconsidering the 2002 Saudi peace initiative, which calls for full Arab recognition of Israel if it gives up lands occupied in a 1967 war and accepts a solution for Palestinian refugees.

Egypt and Jordan are the only two Arab countries to have signed full peace accords with the Jewish state.

Israel had previously balked at the Saudi initiative, saying Middle East rapprochement should not come with preconditions.

Disputes over Jewish settlement in the occupied West Bank and divisions among the Palestinians have deal a blow to Washington's goal of clinching an Israeli-Palestinian peace deal by the end of this year.

(Reporting by Andrew Hammond, writing by Joseph Nasr, Editing by Douglas Hamilton and Dan Williams)

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