Netanyahu thanked Pence for President Donald Trump's "historic" recognition of Jerusalem as the capital of Israel and lauded the American-Israeli alliance, which he said has "never been stronger."
The brief exchange was part of an incredibly warm welcome for Pence in Israel, which has praised the American decision last month to recognize Jerusalem as Israel's capital.
The decision, though, has infuriated the Palestinians, with whom Pence is not meeting, and upset America's Arab allies as well.
The vice president visited Egypt and Jordan prior to his arrival in Israel and is set to deliver a speech to the Israeli Knesset, or parliament, later in the day.
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After the Jerusalem announcement, Palestinian President Mahmoud Abbas said he would not meet Trump administration officials and called off a meeting with Pence that had been scheduled for mid-December.
There, Abbas is expected to urge EU member states to recognize a state of Palestine in the pre-1967 lines, and to step up involvement in mediation.
Nabil Abu Rdeneh, an Abbas adviser, reiterated that the United States "is no longer acceptable as a mediator" in the Israeli-Palestinian conflict.
Netanyahu called Pence "a great friend of Israel" and said there was "no alternative for American leadership" in the peace process. "Whoever is not ready to talk with the Americans about peace does not want peace," he said at a meeting of ambassadors in Jerusalem.
In Israel, The main Arab party in the Israeli parliament says it will boycott his speech, though it is not clear whether they will walk out on Pence in protest or skip the session altogether.
The Knesset, which is accustomed to such high profile visits, has added a new layer of security and other then the speaker and other dignitaries, lawmakers will not have direct access to Pence.
In a new broadside, Ayman Odeh, leader of the Joint Arab List, said it was the party's democratic right to skip the speech. In a tweet, he said the party will not provide a "silent backdrop" to a man he says is a "dangerous racist."
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