US President Donald Trump announced the plan alongside Israel's Prime Minister Benjamin Netanyahu.Credit:Bloomberg
The proposal opens a"transition"to a two-state solution that leaves Jerusalem as Israel's"undivided capital,"Trump said to applause from an audience that included casino magnate Sheldon Adelson and Secretary of State Michael Pompeo.
"Today Israel takes a big step towards peace,"Trump said at the White House alongside Israeli Prime Minister Benjamin Netanyahu."My vision presents a win-win opportunity for both sides."
Netanyahu said he would move on Sunday to apply Israeli sovereignty to the strategically vital Jordan Valley and to all Jewish settlements on the West Bank,according to theNew York Times,a move tantamount to annexation.
It could apply to up to 30 per cent of the West Bank,occupied territory that Israel seized from Jordan in the 1967 war that Palestinians wanted for their future state,theTimes reported.
Even before it fully emerged,the Trump administration's proposal was criticised by Palestinians and many Middle East analysts for being biased in Israel's favour and thus unlikely to end the century-old conflict.
The plan - drafted over the past three years by Trump's son-in-law Jared Kushner - gives the Palestinians less than they have been offered in previous plans they've rejected,leaving its prospects for success slim.