Five Arab states offer Israel full diplomatic relations in exchange for a Palestinian state

Five Arab states, including Saudi Arabia, have relayed to Israel a proposal for the establishment of a Palestinian state, normalisation between Israel and Saudi Arabia and full diplomatic relations between Riyadh and Jerusalem, according to a report Monday in the Wall Street Journal.

According to the report, the proposal, which is still being finalised, has been submitted to the United States.

The paper adds that the offer "has so far been rejected by Israel's government, with the creation of a Palestinian state the main sticking point."