Two-state principles presented to respondents include Israel for Jews and Palestine for Palestinians, with Palestinian refugees having the right to return only to their new country.

Ha'aretz | By Barak Ravid | Dec.31, 2012 | 1:50 AM

Two opinion surveys conducted by different Israeli pollsters in December show that most Likud-Beiteinu and the further-right Habayit Hayehudi voters would support a peace agreement establishing a demilitarized Palestinian state based on the 1967 borders, Israel's retention of major settlement blocs and a division of Jerusalem. The two polls also revealed that two thirds of all Israelis support such an agreement.

"While no American government has ever recognized Israeli sovereignty over any part of the ancient capital, it is equally true never before had an American president made an issue of the building of homes in the existing Jewish neighborhoods begun in the immediate aftermath of the reunification of the city in 1967. Though settlement building in the West Bank has been a constant source of tension, and projects such as the one at Har Homa outside these Jewish sections of the city (although it was on vacant, Jewish-owned land) were disputed by Washington, housing in places like Ramat Sharon had never been a bone of contention."(emphasis added)

The Israeli settlements in East Jerusalem are getting out of control and endanger the two state solution.

See Peace Now's simplified primer on the status of Jerusalem.

Today, the Israeli Peace Now movement organized a tour of Jerusalem for Israeli and Palestinian leaders, including members of parliament.