Palestinian President Mahmoud Abbas. AFP
"Undermining the two-state solution would motivate the central council of Palestine Liberation Organization to take decisive decisions," Abbas said in a televised speech.
The warning came just days after Israel approved the construction of 372 settlement units in the southern West Bank city of Hebron, according to Israeli media.
The Palestinians "won't accept the continuation of the (Israeli) occupation of the land and the Palestinian people forever," he added.
"The Palestinian side is still extending its hands to achieve a just and comprehensive peace in accordance with the two-state solution and the international resolution under the auspices of the international Quartet," Abbas said.
Direct peace talks between Israel and Palestine came to a halt in late March 2014, following deep differences on issues related to Jewish settlements and the recognition of a Palestinian state on the 1967 borders.