French President Francois Hollande said he does not want to start imposing sanctions on Israel despite it announcing plans to expand settlement building in occupied territories.
Mr Hollande, who was at a news conference with Italian Prime Minister Mario Monti, said: "We don't want to shift into sanctions mode.
"We are more focused on convincing."
Britain today summoned the Israeli ambassador amid deepening international anger at fresh Israeli settlement expansion plans.
The Foreign Office does not deny reports that that Britain and France are considering withdrawing their ambassadors from Israel.
Israel's response to the Palestinians' crushing diplomatic victory at the United Nations late last night is provocative.