Reviving talks in Israeli strategic intere

Israeli Prime Minister Benjamin Netanyahu says resuming negotiations with Palestine are "vital". Source: AAP

RENEWING negotiations with the Palestinians is a "vital" Israeli interest, Prime Minister Benjamin Netanyahu has said, a day after an agreement was announced for the basis to resume talks.

"The resumption of the peace process is a vital strategic interest of the state of Israel," the Israeli premier said in a statement on Saturday.

"It is important on its own to try to bring an end to the conflict between us and the Palestinians, and is important because of the challenges facing us, especially from Iran and Syria," he said.

US Secretary of State John Kerry said on Friday that Israeli and Palestinian negotiators will meet in Washington in the near future after an agreement on the basis to resume peace talks.

Talks have stuttered and started for decades in the elusive bid to reach a final peace deal between the Arab world and Israel.

But they collapsed completely in September 2010 when Israel refused to keep up a freeze on settlement building in Palestinian territories.

Netanyahu also stated the two central goals he perceived for the talks: "Preventing a bi-national state... that would endanger the future of the Jewish state, and preventing the establishment of another Iranian-sponsored terrorist state within our borders."

He did not provide further details on what the sides had agreed upon ahead of the initial rounds of talks.

Earlier on Saturday, Intelligence Minister Yuval Steinitz said Israel would release a "limited" number of Palestinian prisoners as a "gesture".

"I will insist on Israel's security demands and its vital interests," Netanyahu's statement said.

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