Israeli government spokesperson Mark Regev has welcome US President Barack Obama's advice to his Palestinian counterpart Mahmoud Abbas to drop a statehood bid for now.
Regev said establishing a Palestinian state recognised by the United Nations would not boost the chances of peace in the troubled region.
However Palestinian Foreign Minister Riyad al-Malki has told SBS that based on everything he has heard Israeli PM Binyamin Netanyahu say, he does not believe Israel wants a two-state solution at all.
"... I simply fail to understand the Palestinian position where they say 'We want peace, but we boycott Israel, we refuse to talk to Israel'.
"How do they expect to make peace unless they talk to us?"
News that makes sense
Your trusted source for staying up-to-date with the world around you. Get free daily news updates and analysis, straight to your inbox.
Regev added that peace could only be achieved ithrough ongoing talks between themselves, rather than via the UN.
"The idea of Palestinian statehood will emerge as a result of solving the conflict, and not as a vehicle with which to continue the conflict," he said.
SBS senior correspondent Brian Thomson asked Regev why - after 20 years of Israeli-Palestinian negotiations - no agreement has been reached on crucial issues.
The sticking points have always been the exact borders of a potential Palestinian state, the right of return of Palestinian refugees and the status of Jerusalem.
"I'm not sure it's fair to point the finger at Israel and blame us for the failure (to make) a political breakthrough," Regev said.
"I'd remind you that successive Israeli governments have put far-reaching compromises on the table," he added.
"Prime ministers have said let's talk about 1967 borders ... (Former) prime minister Olmert even talked about splitting Jerusalem .. The Palestinian answer was no."
Regev urged the Palestinians to bring all of their demands to the table for ongoing talks.
He deflected accusations that such talks are meaningless while Israel continues to build settlements on land regarded by the international community as Palestinian.
"The current government of Israel under Prime Minister Netanyahu has shown more restraint on the sensitive issue of settlements than any previous government," he claimed.
