"A free and independent state is not beyond the realms of possibility, even
if it is late in seeing the light of day," the Palestinian Authority president said.
"It will come inevitably for it is one of our rights and one of the conditions for peace in the whole region," he added in the address broadcast across Palestinian radio and television.
Speaking on the 17th anniversary of a symbolic proclamation of independence by his late predecessor Yasser Arafat, Mr Abbas said an independent state would be established on Palestinian and not Israeli terms.
"Our real battle revolves around creating this state according to our conditions and not of those of the occupation," he said.
But signalling the challenges ahead, Mr Abbas blamed Israeli Prime Minister Ariel Sharon of trying to impose "an extremely dangerous alternative" state which would be subject to constant Israeli surveillance and divided up "into cantons by the (West Bank Jewish) settlements."
The roadmap for peace, an internationally-brokered plan endorsed by the Israelis and Palestinians more than two years ago, aims to create
a Palestinian state alongside a secure Israel.
However US President George W. Bush acknowledged last month that
independence may not come about before he leaves office in 2009.
It comes as Israel and the Palestinian Authority agreed on a detailed arrangement for opening the borders of Gaza and to allow freer movement for Palestinians elsewhere.
The deal was reached after around the clock negotiations adjudicated by U.S. Secretary of State Condoleezza Rice.
Ms Rice described the breakthrough as a “big step forward” that would free up Palestinian movement while satisfying Israeli concerns about terrorism.