New talks with the Palestinians will lead to a peace deal only if Israel's vital interests are protected, Israel's leader said today.

Benjamin Netanyahu's comments were his first since US Secretary of State Hillary Clinton announced the resumption of direct peace talks on Friday.

Mr Netanyahu said Israel's security must be guaranteed and that the Palestinians must recognise Israel as the state of the Jewish people.

He also said any agreement, which acknowledged would be "difficult but possible", must mark the end of the conflict.

The US announcement came after months of diplomatic efforts. The Palestinians have been wary of talking to Mr Netanyahu's hard-line government.

The last round of peace talks ended in late 2008.

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