WASHINGTON, Sept 12 (Reuters) - U.S. Secretary of State Condoleezza Rice will visit Israel and the West Bank next week to encourage both sides to make progress before a U.S. peace conference this year, the State Department said on Wednesday.

State Department spokesman Sean McCormack said Rice would be in the region from Sept. 18-20, first visiting Jerusalem for talks with Israeli leaders.

She then planned to travel to Ramallah in the West Bank for meetings with Palestinian President Mahmoud Abbas ahead of a U.S.-sponsored Middle East conference.

A date has not been announced for that meeting but it is likely to take place mid-November in the United States.

"She (Rice) wants to build upon some of the progress that the two parties themselves have made in their discussions," said McCormack of Rice's trip.

This week, Israeli Prime Minister Ehud Olmert met Abbas in Jerusalem and the two sides agreed to set up negotiating teams to find common ground ahead of the conference. "That is a very positive development," said McCormack of the decision to form negotiating teams.

"If we are going to succeed in bringing about a two-state solution it is going to be fundamental that the two states themselves are ready to roll up their sleeves," he added.

During a trip to Jerusalem earlier this year, Rice arranged a three-way meeting between herself and the Palestinian and Israeli leaders.

Asked whether Rice hoped to arrange another such meeting on this trip, McCormack declined comment.

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