(Adds Rice visit, White House comment, quotes, background)

WASHINGTON, July 30 (Reuters) - Israeli and Palestinian negotiators plan to continue talks toward a peace deal despite Israeli Prime Minister Ehud Olmert's announcement that he intends to step down, a Palestinian official said on Wednesday.

"We decided today that we are going to continue pursuing to reach an agreement before the end of the year," the negotiator, Saeb Erekat, told reporters after Israeli and Palestinian officials met U.S. Secretary of State Condoleezza Rice.

Erekat said Rice would return to the region Aug. 20 for more talks.

The White House said it also intended to keep working on a peace deal.

The heads of the delegations at the talks were Rice, former Palestinian Prime Minister Ahmed Qurei and Israeli Foreign Minister Tzipi Livni, who is considered a possible successor to Olmert.

Livni left the State Department without speaking to reporters.

The talks were the latest in a series Rice has convened this year. But, like the Israeli-Palestinian bilateral negotiations, they have yet to produce tangible progress toward ending the six-decade conflict.

They were getting underway just as the news came from Israel that Olmert would resign after his ruling Kadima party chooses a new leader in a Sept. 17 internal election.

But Erekat said both sides agreed the Israeli political turmoil was not an obstacle to peace.

"It's an internal matter as far as we're concerned. At the end of the day, as Palestinians we want to make peace with all Israelis, not with this party or that person," he said.

He added that the Israelis had said it would not affect the negotiations. (Reporting by Susan Cornwell; Editing by Kristin Roberts and Xavier Briand)

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