Israel came under pressure from US vice president Joe Biden to support a two-state policy.
Speaking to AIPAC, the leading pro-Israel lobby during its annual conference in Washington Biden urged Israel to stop building settlements and allow Palextinians freedom of movement.
Biden also said the Palestinian Authority "must combat terror and incitement against Israel."
He added: "With all the change you will hear about, there is one enduring, essential principle that will not change; and that is our commitment to the peace and security of the state of Israel."
"That is not negotiable. That is not a matter of change. That is something to be reinforced and made clear. It seems almost unnecessary to state it, but I want the word to go forth in here that no one should mistake it."
Biden’s message was backed by White House Chief of Staff Rahm Emanuel who told AIPAC delegates that two states for two peoples is the only solution the United States is committed to. “This is the moment of truth for Israel and the Palestinians,” he said.
In a speech to AIPAC on Monday, Netanyahu said he was ready to begin Israeli-Palestinian peace talks immediately but he made no reference to a Palestinian state. He highlighted the threat to Israel from Iran. Rahm Emanuel said that Israeli-Palestinian cooperation was essential to counter the threat from Iran.