Jared Kushner, the son-in-law law and senior adviser to United States President Donald Trump, on Thursday said that the US may pull back from the longstanding mentions of a two-state solution with Palestine and accept Jerusalem as Israel's capital.
Kushner is expected to present the long-awaited deal next month on behalf of the Trump administration, which has closely aligned itself with Israel, Al Jazeera reported.
Vowing to take a fresh approach, Kushner indicated that the plan will not propose two states for Israelis and Palestinians.
"If you say 'two-state,' it means one thing to the Israelis, it means one thing to the Palestinians," Kushner said at the Washington Institute for Near East Policy.
"We said, you know, let's just not say it. Let's just say, let's work on the details of what this means," he was quoted as saying.
However, Kushner declined to provide further details about the plan before its release but, asked if it would cover the final status between Israelis and Palestinians, adding, "That's correct, we will."
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Kushner's plan would not be revealed before the Muslim holy month of Ramadan ends in the first week of June, and perhaps not even then. The plan attempts to ensure security for Israel and provide economic opportunity to improve the lives of Palestinians, he added.
Kushner's plan does not include any participation from Palestinians. The Palestinian Authority, which has complained that White House favours Israel, severed ties with the Trump administration following several actions targeting them.
Earlier in March, the Trump-administration closed the Palestinian diplomatic mission in Washington, saying the Palestinians refused to engage in peace talks with Israel.
The US has also stopped funding the United Nations agency that helps Palestinian refugees, slashing hundreds of millions of dollars in aid for projects in the occupied West Bank and Gaza Strip and cutting funding to hospitals in Jerusalem that serve Palestinians.
On December 6, 2017, Trump formally recognised Jerusalem as the capital of Israel and stated that the American embassy would be moved from Tel Aviv to Jerusalem.
Kushner said his team had spoken to Palestinian businesspeople and ordinary residents and believed the peace plan will be "very acceptable to them".
However, Palestine has already said it does not accept mediation by Trump, whose evangelical Christian base is fervently pro-Israel and whose long list of actions in support of the Jewish state includes moving the US embassy to Jerusalem.
"What we need to start doing is just recognising truths, and I think that when we recognised Jerusalem, that is a truth - Jerusalem is the capital of Israel, and that would be part of any final agreement anyway," Kushner said.
Israel captured the West Bank, Gaza Strip and east Jerusalem in the 1967 Middle East war. The Palestinian leadership demand that Israel fully withdraws from all occupied territories for a future state.