"A peace treaty will be possible with the following formula: A demilitarized Palestinian state that will recognize Israel,” Netanyahu said in a speech at the opening of the winter session of the Knesset on Monday.
He also claimed that Israel has the right to declare Jerusalem al-Quds as its capital.
"The French build in Paris, the English build in London, the Israelis build in Jerusalem. Should we tell Jews not to live in Jerusalem because it will stir things up?" Netanyahu asked.
This comes as the Palestinians say East Jerusalem (Al-Quds) is the capital of an independent Palestinian state, to be announced.
The Israeli premier further defended Tel Aviv’s plan to build settler units on the occupied Palestinian land despite international condemnations.
The international community, including Israel's close allies such as the US and the EU, has criticized Tel Aviv's settlement construction projects.
In a statement on Monday, EU foreign policy spokeswoman Maja Kocijancic censured Israel’s plans to construct more settlements on the occupied Palestinian land after Netanyahu ordered the construction of 1,060 new settler units in East al-Quds (Jerusalem).
Kocijancic’s remarks came amid widespread global condemnation of Israel’s land grab policies, which have been among the major reasons behind the failure of US-led talks between Israelis and Palestinians.
Source: PressTV