The claim follows preliminary talks in Washington this week aimed at resolving one of the world's most intractable conflicts.
Standing side by side after initial talks in Washington, Palestinian and Israeli negotiators said it's time to end their decades-old conflict.
United States Secretary of State John Kerry, who has dragged the two sides back to the negotiating table after months of shuttle diplomacy, says they'll meet again within the next two weeks to begin formal direct, bilateral negotiations.
Mr Kerry says both sides have agreed that the most contentious issues, such as borders and refugees and the fate of Jerusalem, will be on the table for discussion.
Palestinian negotiator Saeb Erekat has praised Mr Kerry's efforts to resume the talks, saying no-one benefits more from their success than Palestinians.
"I'm delighted all final status issues are on the table and will be resolved without any exceptions. It's time for the Palestinian people to have an independent sovereign state of their own."
Israel's chief negotiator, Justice Minister Tzipi Livni, says the talks are resuming not just in response to US pressure but because it's in the interest of both parties.
However, Ms Livni has admitted that disagreements within Israel's right-leaning governing coalition could pose an obstacle to any deal.
"We live in a tough neighbourhood. To be optimistic is something we can't afford. But there is some hope, and I hope that when in Israel they would see the first meeting, they would understand that we shouldn't give up hope. And it is reachable and we need to do it because it is in the national interest. It's not a favour to the United States or to the Palestinians: this is something that we need to do."
Views from Australia of the latest talks have been mixed.
Dr Binoy Kampmark, lecturer in global studies at RMIT, says Israel and the Palestinians remain deeply divided over what's called the "final status issues".
"There are still those enormous stumbling blocks - you just can't see agreement happening. Certainly the return of the settlers, the refugee problem, the borders of the 1967 war - these are the things that are still enormous issues and they don't seem to be, at this particular point given the way the parties are approaching it, reconcilable - which is not to say they won't talk about it later, but I don't see it going much beyond that."
Dr Kampmark also cautions that the heavy involvement of the United States is likely to mean no solution will be brokered that if it is not in the interests of US-Israeli ties.
But the head of the General Delegation of Palestine to Australia, Izzat Abdulhadi, says US involvement has been vital to re-starting the talks.
Mr Abdulhadi says other international involvement in the Middle East peace process will also be necessary.
"It looks like there is a sort of personal commitment from John Kerry, in particular, of course supported by Obama, to solve this problem. And I think the United States finds it's a good time now to solve this problem. I mean it depends also on the positions by the two sides, in particular by (Israel's ruling party) Likud. This cabinet now is very right wing and surrounded by a lot of figures who are against the two-state solution. So it's a very difficult process but I think it depends entirely on active engagement of United States support by the European Union and other important countries like Australia, Canada and others."
US Secretary of State John Kerry, on announcing the start of direct talks, had said their objective is to achieve a final status agreement over the course of the next nine months.
After years and years of efforts to find a solution, is nine months realistic?
Peter Wertheim, the executive director of the Executive Council of Australian Jewry, says the time is right to try.
"Even though it does sound ambitious to try to reach a settlement within nine months, it's not impossible. The hardliners among the Palestinians are probably at their weakest for many years and that offers prospects for more moderate elements within the Palestinian community to come forward without the same sort of fear and pressure that they formerly faced if they made any compromises. And the reality is that peace will require painful compromises by both parties, not just by the Israelis but by the Palestinians too. Everyone knows that."
But Izzat Abdulhadi says Palestinians have made enough compromises.
He says the status quo can continue, in which there is a Jewish minority governing Palestinians in an apartheid-like situation, or Israel can compromise.
"Israel is facing a huge challenge now and the leadership should choose between a bi-national state in which the Palestinians will be the majority or a Jewish state based on the two-state solution. It's not an easy choice for Israel. The best solution for both sides, in particular Israel to keep its Jewish character and to continue as democratic, is to have a two-state solution and to recognise the Palestinian rights in their own state in the 1967 borders. Palestinians will not compromise the compromise. We will not accept a Palestinian state which is not continuous, which is divided."
However international relations expert Binoy Kampmark says it does look as though the Palestinians will have to make more compromises if anything is to come of these latest peace talks.
"The Israelis have the bargaining chips really when it comes down to this, and the issue is of course where the Palestinians can fit in terms of the two-state solution. And that's something that's very problematic because the sentiment against a Palestinian state in Israel amongst the security establishment is a strong one."
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