GAZA - The Palestinian leadership on Thursday rejected statements from Israeli Prime Minister Benjamin Netanyahu, in which he suggested the recognition of a Palestinian state in exchange for dropping Palestinian refugees' right of return.

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"Netanyahu's statements do not represent any progress or change in the Israeli position," said Yasser Abed Rabbo, a member of the PLO's Executive Committee.

Israeli media reported earlier on Tuesday that Netanyahu is ready to resume peace talks with the Palestinians with the 1967 borders and land swap as the baseline of the talks. In return, Netanyahu wants the Palestinians to recognize Israel as the homeland of Jews and to settle the issue of refugees inside the Palestinian state to maintain the Jewish identity of the Israeli society.

It is the first time that Netanyahu expressed his readiness to accept a Palestinian state on the 1967 borders. Earlier, the prime minister said that Israel would be indefensible if a Palestinian state was created on the borders.