Israel's Prime Minister Mr Ariel Sharon said today he will not make any compromise on security to achieve peace with the Palestinians.
He was speaking after talks with British Prime Minister Mr Tony Blair in Jerusalem.
Mr Sharon said he was forming a team for holding peace negotiations with the Palestinians, but that more than a year of bloodshed must end before such talks start.
"Once there is complete quiet and a complete end to terror, violence and incitement, we can go on to conducting peace negotiations, which is something I want very much," Mr Sharon told a news conference he was addressing with Mr Blair.
"The moment the terror ends, in my view there is a unique opportunity here for Israel and the Palestinians to reach an agreement that will give us the possibility of living here in peace side by side," he said.
Mr Blair is due to go to Gaza for talks with Palestinian leader Mr Yasser Arafat.
This is the final leg of a diplomatic trip which has seen Mr Blair attempt to forge a consensus with Arab leaders on a way forward for the area.
AP