The ministers, meeting in Libya, endorsed a decision by Palestinian leaders to stay away unless Israel restores a ban on settlement building.
But the ministers said the US had to be given more time to break the impasse.
The direct talks, the first in almost two years, began in September but later stalled when Israel refused to extend the building freeze.
The Palestinian Authority President, Mahmoud Abbas, attended the meeting of Arab League foreign ministers in the Libyan city of Sirte.
Afterwards, Qatari Foreign Minister, Sheikh Hamad bin Jassim bin Jabr al-Thani, who chaired the meeting, told reporters: "The committee endorses the decision of President Abbas to stop the talks."
He added: "It urges the American side to pursue its efforts to prepare adequate grounds and circumstances to resume the peace process and put it back on the right track, including stopping settlements."
The committee of ministers is now due to meet again in a month's time to review the situation.
Israeli Prime Minister Benjamin Netanyahu has refused to extend the 10-month ban on settlement building in the West Bank which expired on September 26.
Many countries, including the US, had urged the Israelis to extend the freeze.
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