Israeli Prime Minister Benjamin Netanyahu has rejected a demand by US President Barack Obama that he commit to a major expulsion of Jews from their homes in Judea and Samaria prior to a renewal of peace negotiations with the Palestinian Authority.

According to Israeli media reports on Wednesday, Obama wanted to organize a major peace summit one month from now based on such an Israeli commitment. Even before the sides had a chance to sit down at the negotiating table, Israel was to surrender to all Arab demands to allow the creation of a Palestinian Arab state on every inch of land they claim.

A report in an Arabic-language newspaper indicated that the Palestinian Authority had informed Obama the peace process would not move forward until Israel was strong-armed into accepting those conditions.

At the same time, visiting US Ambassador to the UN Susan Rice told Netanyahu that the White House expects more than just "lip service" from Israel regarding restarting the peace process.

Netanyahu has repeatedly stated his willingness to immediately restart talks with the Palestinians. He has issued only one precondition of his own, that the Palestinians finally honor their previous peace commitment to recognize Israel as the national home of the Jews.