If this report is accurate, it is extremely surprising:

Foreign Minister Avigdor Lieberman was “very moderate” during his meeting with Egyptian intelligence chief Omar Suleiman last week, and told him that a two-state solution with the Palestinians was the only way to achieve peace and security in the region, according to a report in the London-based Arab paper Al-Hayat Saturday.

The paper was quoting an unnamed Egyptian official who it described as “reliable.” Lieberman, the official said, also told Suleiman that economical development of the West Bank and the Gaza Strip was of utmost importance to the peace process. The official said that the meeting between the two was successful and achieved its objective.

The Jerusalem Post could not confirm the report.| MORE ›

The Los Angeles Times reports:

Reporting from Cairo and Jerusalem — U.S. envoy George Mitchell met in Jerusalem today with top Israeli officials to push for what at the moment appears unlikely: substantive talks between a divided Palestinian leadership and the new right-wing government of Israeli Prime Minister Benjamin Netanyahu.| MORE ›

The Associated Press thinks so:

During the election campaign, Benjamin Netanyahu dismissed peace talks with the Palestinians, supported expanding West Bank settlements and warned that concessions only embolden Israel’s enemies.| MORE ›

The Jerusalem Post reports:

At the request of the Egyptians, Palestinian Authority President Mahmoud Abbas decided over the weekend not to ask outgoing Prime Minister Salaam Fayad to form a new government, to avoid closing the door to the establishment of a joint Hamas-Fatah coalition, a senior PA official in Ramallah said Saturday.| MORE ›