Netanyahu considering creation of Palestinian state in return for improved ties with the Arab world

Israel Hayom reported this morning (Sunday) that Prime Minister Netanyahu is considering agreeing to American recognition of a Palestinian state in exchange for normalization with Saudi Arabia. However, the Israeli leader is set to clarify that a permanent agreement will only be discussed in direct negotiations with the PA.

According to the report, the outline being considered will include unilateral US recognition of a Palestinian state - with Israel agreeing to this, but clarifying that a permanent agreement will only be discussed through direct negotiations.

A political source stated in the report that Netanyahu has not yet made a final decision on this direction, but claimed that it was being seriously examined by him and Minister of Strategic Affairs Ron Dermer, who is leading the talks on Netanyahu's behalf.

This morning's report follows a Wall Street Journal publication last week according to which the Biden administration is expected to recognize a Palestinian state within weeks.

The move, which drew sharp criticism from government ministers, received a weak and restrained response from Netanyahu, who only responded to the report on Thursday.

According to the report, the delay and nature of the response appears to indicate agreement with the US administration.