Hamas politburo chief Khaled Mashaal living in Damascus said he would be willing to set up a Palestinian state alongside Israel, according to its 1967 borders. He also offered Israel a ten-year ceasefire deal.
Mashaal, however, said he would not recognize Israel, since it would give legitimacy to the occupation.
Palestinian Prime Minister Ismail Haniyeh, on the other hand, said Palestine was Moslem land and no one had the right to give it up.
While on a visit to Iran, Haniyeh met with spiritual leader, the Ayatollah Ali Khamenei and told him armed struggle was the only way to free Palestine from the occupation.
After four days in Iran Haniyeh is headed to Sudan.