“We are prepared to make considerable concessions and it’s not going to be easy,” International Relations Minister Yuval Steinitz said, The British Telegraph reported on Thursday.
In an interview with The Telegraph, Steinitz stated: "Both sides will have to make very significant concessions and very difficult concessions. We will probably have to make very serious territorial concessions."
"And the Palestinians will have to make also both territorial concessions - because there will be settlement blocks - but more important still they will have to recognise the very existence of the Jewish people and the Jewish state," the international relations minister added.
Steinitz told the Telegraph Israel is "ready" for the two state solution, but vowed Israel would hold a referendum before ending the conflict.
"I can tell you, I am confident that most Israelis will support it," Steinitz told the Telegraph.
He added that a "demilitarized" Palestinian state was the “only possible solution” to the conflict.