Valls, who arrived last night, is to meet Netanyahu tomorrow before travelling to Ramallah on Tuesday to hold talks with Palestinian prime minister Rami Hamdallah.
Palestinian president Mahmud Abbas has welcomed the French initiative to hold a meeting of foreign ministers from a range of countries on June 3, without the Israelis and Palestinians present.
Another conference would then be held in the autumn, with the Israelis and Palestinians in attendance. The goal is to eventually restart negotiations that would lead to a Palestinian state.
In an interview with Palestinian newspaper Al-Ayyam published today, Valls said that Israeli settlement expansion in the occupied West Bank must stop.
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But he also reiterated that his government would not automatically recognise a Palestinian state if the peace initiative failed.
A threat to do so was made in January by former foreign minister Laurent Fabius, angering the Israeli government. His successor Jean-Marc Ayrault has since backed away from the statement.
"The objective is to arrive at the creation of a Palestinian state," Valls said in the interview.
Valls said "we must also guarantee" Israel's security, but called for a halt to settlement building, considered a major stumbling block to peace.
Settlements in the West Bank are considered illegal under international law and built on land the Palestinians see as part of their future state.
"Stopping settlements is an imperative," he said. "Because we cannot both want to discuss peace and be sincere in the negotiations and at the same time continue to create facts on the ground."