The peace summit aimed at creation of an independent Palestinian state.
The two leaders are expected to push forward an "agreement of principles" to be presented at the international summit to be hosted by US President George Bush.
Israel has been trying to bolster Abbas, who controls the West Bank, in an effort to isolate the Islamist Palestinian faction Hamas which took over Gaza two months ago after ousting Fatah forces loyal to the PA President.
Olmert and Abbas met earlier this month in Jericho -- the first such high-level meeting in Palestinian territory in seven years.
At an intelligence briefing during the cabinet meeting on Sunday, deputy head of Israeli intelligence agency Shin Bet said that the Hamas leadership in Damascus has instructed West Bank based militants to attempt a large scale attack inside Israel but the Hamas.
"There are efforts by Khaled Meshal (Hamas' Damascus based political bureau chief) and the Hamas leadership abroad to formulate a plan to undermine the diplomatic efforts between Abbas and Israel," the deputy head of Shin Bet told the ministers.
However, Ahmed Yousef, political adviser to deposed Palestinian Prime Minister Ismail Haniyeh told Haaretz that Shin Bet's assessments are "inaccurate". - DDNEWS