Netanyahu: Root of Palestinian conflict is not territory

However, US Secretary of State John Kerry, who is engaged in efforts to relaunch stalled Israeli-Palestinian peace talks, believes the Arab Peace Initiative could provide a framework for a future peace deal.

"Until the Palestinians recognise our right to exist as a national state -- no matter what the borders -- and until they declare that the conflict is over, there will not be peace," they quoted him as saying.

Earlier, a cabinet minister considered close to Netanyahu ruled out the 1967 borders as the starting point for negotiations.

"If Israel agrees to come to the negotiating table while accepting in advance that talks would be held on the basis of the 1967 lines, there wouldn't be very much to negotiate about," said Gilad Erdan, a member of the security cabinet.

"We cannot start negotiations after agreeing in advance to give up everything," he told public radio.

Israel hopes land swaps will allow it to retain the large blocs where most settlers live, while the Palestinians would be compensated with territory under Israeli sovereignty.

In Washington, deputy State Department spokesman Patrick Ventrell said Kerry had a telephone conversation with Netanyahu on Tuesday to discuss the Arab initiative, without giving details.

"From our perspective, and the Israelis spoke of this too, it sends a positive message about the Arab countries' willingness to be flexible about further peace efforts," he said.

AFP