Israeli Prime Minister Benjamin Netanyahu held out the prospect Monday of reviving a 2002 Arab peace initiative that offers Israel diplomatic recognition from Arab countries in return for a statehood deal with the Palestinians. Netanyahu's comments were a formal response to a speech last week by Egyptian President Abdel Fattah al-Sisi, who promised Israel warmer ties if it accepted efforts to resume peace talks.

"The Arab peace initiative includes positive elements that can help revive constructive negotiations with the Palestinians," Netanyahu said, echoing comments he made a year ago to Israeli reporters. "We are willing to negotiate with the Arab states revisions to that initiative so that it reflects the dramatic changes in the region since 2002 but maintains the agreed goal of two states for two peoples." 

The prime minister made the comments in English in a speech that was mostly in Hebrew, a device he often uses when he wants to make a statement to the international community.

Netanyahu spoke moments after ultra-nationalist Avigdor Lieberman was sworn in as defense minister and Israel's fragile right-wing coalition gained vital support in parliament. Lieberman echoed Netanyahu on the Arab peace plan and appeared to indicate that his inclusion in the government did not spell an end to peace efforts with the Palestinians.

Previous attempts to engage the adversaries have come to nought. The Palestinians say Israeli settlement expansion denies them a viable state they seek in the occupied West Bank, the Gaza Strip and a capital in Arab East Jerusalem.

Israel has demanded tighter security measures from the Palestinians and a crackdown on militants who have attacked or threaten the safety of Israeli citizens.

In the last half year, Palestinian attacks have killed 28 Israelis and two visiting U.S. citizens. Israeli forces have shot dead at least 195 Palestinians, 134 of whom Israel has said were assailants. Others were killed in clashes and protests.

France is set to host a peace conference of to revive peace efforts on June 3 with the participation of ministers from the Middle East Quartet — the United States, Russia, the European Union and the United Nations — the Arab League, the U.N. Security Council and about 20 countries. Neither Israel, which has opposed the gathering, nor the Palestinians, who have welcomed it, have been invited.