'I want to help advance the beginning of the (peace) process and I want at the same time to assist in the normal life of the settlers, who are also citizens of Israel,' Netanyahu said.

Asked about the possible meeting with Obama and Abbas, he said that no parley has yet been arranged.

'I never asked for one, and I'm not the one stipulating conditions for it to take place,' he said.

The premier said he was ready to see the creation of a 'truly demilitarised' Palestinian state, with international guarantees for security arrangements for Israel.

However, he added, such a state 'has to recognise the existence, and right of existence, of Israel as the national home of the Jewish people.'