Blair says Palestinian state only solution

Middle East Quartet envoy Tony Blair on Monday emerged from talks with new Israeli Prime Minister Benjamin Netanyahu saying a Palestinian state was the only solution to the Middle East conflict.

"My view is that he does understand that if the right context would be created for peace, the only lasting peace is based on a two-state solution," Blair said after his meeting with the hawkish Israeli leader.

"The only solution that will work which is two states living side by side in peace," said Blair, the former British prime minister who now represents the diplomatic Quartet made up of the European Union, Russia, the United Nations and the United States.

He said the priorities at this stage were to hold "a credible political negotiation for a two-state solution," measures to improve life in the Palestinian territories and a lifting of the blockade of the Gaza Strip.