Prime Minister Benjamin Netanyahu has said he will not drop his demand that the Palestinians recognise Israel as a Jewish state in peace negotiations that the United States wants to revive.

"I told Abu Mazen I believe peace hinges first on his readiness to stand before his people and say, 'We ... are committed to recognising Israel as the nation-state of the Jewish people'," Netanyahu told Israel Radio in an interview aired today, referring to President Mahmoud Abbas.

"I will not drop this subject and other important issues under any final peace agreement," Netanyahu said.

U.S. President Barack Obama on Tuesday brought the Israeli and Palestinian leaders together for the first time since Netanyahu came to power in March and urged them to revive stalled peace negotiations soon.

The Palestinians have rejected Israel's demand that they recognise it as a Jewish state. They say Israel should meet its previous commitments to fully halt settlement activity in the occupied West Bank before talks can resume.

Netanyahu has rejected this demand and Israeli officials say he has offered a nine-month construction freeze.

Netanyahu will address the United Nations General Assembly in New York on Thursday and Israeli officials say his speech will focus on Iran's disputed nuclear programme, which Israel deems as a threat to its existence.

Iranian President Mahmoud Ahmadinejad blasted Israel's "inhumane policies" towards the Palestinians in his speech at the United Nations on Wednesday and several delegations walked out after he made apparently anti-Semitic remarks directed at Israel.