DHAHRAN, SAUDI ARABIA, DEC. 14 -- Saudi Arabia has declined to receive Algerian President Chadli Bendjedid following his visit to Baghdad, a move that appears to end the latest Arab effort to find a peaceful solution to the Persian Gulf crisis.

"He asked to come, but they have sent signals that if he's coming for compromises, it {a visit} won't happen," a Saudi official said tonight.

Saudi Arabia, the official said, has "three conditions for anyone who comes to discuss a peaceful settlement to the gulf crisis." Those conditions are: Iraq's withdrawal from Kuwait, restoration of its legitimate government and "withdrawal of all Iraqi troops from the Iraqi-Saudi border." This last condition has not been stressed before by Saudi officials, although they have mentioned it.

Bendjedid, who was in Oman today after stops in Baghdad and Tehran, reportedly had planned to visit Saudi Arabia next, and there had been speculation that he had a message from Iraqi President Saddam Hussein for King Fahd.

The Algerian leader launched his peace mission after President Bush proposed direct contacts between U.S. and Iraqi officials and after consultations with Iraq's Arab allies. Before his trip, Bendjedid also held meetings with a senior advisor to King Fahd. The Saudi refusal to receive Bendjedid apparently was based on what that advisor, Sheikh Ali bin Musallem, heard during those talks.

The Saudi official reached tonight said he did not have first-hand knowledge of the proposal that Bendjedid had hoped to discuss with Fahd. But, based on his government's refusal to receive Bendjedid, the official said he believed the proposal would leave Iraq in control of parts of Kuwait.

This indicates that the plan is similar to earlier peace formulas offered by Jordan and the Palestine Liberation Organization.

As the host country for almost 300,000 U.S. troops, Saudi Arabia is a key player in the gulf crisis. Its refusal to go along with Bendjedid's compromise is likely to increase Arab fears that the military standoff between Iraq and the U.S.-led multinational military force gathered here will be settled by war.

The United Nations has set Jan. 15 as the deadline for Iraq to withdraw from Kuwait, after which military action may be used by the allied forces to evict Iraqi troops.

Bendjedid also sought to set up a meeting between Fahd and Saddam, according to Jordanian officials. Jordan and Algeria had hoped, they said, that a dialogue between the two might lead to an "Arab solution" to the crisis and thus avoid the need for outside power to be involved.

But Fahd repeatedly has said he will not meet Saddam until his occupation forces are out of Kuwait. This position, said the Saudi spokesman, is based on the government's attitude that "if you start sitting at the table {with someone}, it means you recognize that he had some rights for what he did."

Bendjedid would be welcome to visit to discuss how Saudi Arabia could help make Saddam's withdrawal from Kuwait more palatable to his own people, such as by agreeing to direct Kuwait-Iraq talks on their differences after a withdrawal, the Saudi official said. "We are willing to discuss anything after withdrawal. But {any mediator} has to come with solutions, not with compromises."