US sets new Israel meeting, presses Arabs to help

* Obama envoy to meet Barak again, in London on Monday

* US seeks Arab help to persuade Israel to freeze settlement

* Israeli settlement offer may fall short of Arab demands

By Alastair Macdonald and Dan Williams

JERUSALEM, July 3 (Reuters) - U.S. President Barack Obama's envoy will hold a second meeting in a week with Israel's defence minister, an Israeli official said on Friday, announcing talks on Monday likely to focus again on a dispute over settlements.

A senior U.S. official confirmed to Reuters that Washington is asking Arab governments whether they might ease sanctions on Israel if it freezes Jewish settlement on Palestinian territory, a move that could lead to regional peace negotiations.

The U.S. State Department had no immediate comment.

But Arab leaders have so far been cool, Western diplomats said, to suggestions they might open their airspace to Israeli airliners, allow roaming calls by Israeli cellphones or let in tourists whose passports show they have also visited Israel.