Netanyahu's remarks came in response to a question about Saudi Arabia setting the establishment of a Palestinian state as a precondition for normalization with Israel.

In an interview with Israeli media, Netanyahu said: "The Saudis can create a Palestinian state in Saudi Arabia; they have a lot of land over there."

The Israeli PM made these remarks during his visit to Washington, DC, where he appeared alongside US President Donald Trump, who sparked outrage on Tuesday when he suggested that the US would "take over" Gaza, displace its Palestinian population, and turn the territory into the "Riviera of the Middle East."

"The US will take over the Gaza Strip, and we will do a job with it too," Trump said.

The proposal has drawn widespread condemnation, with critics accusing it of attempting to "ethnically cleanse" the Palestinian population and erase their presence in Gaza.

Netanyahu also rejected the two-state solution, calling a Palestinian state a "security threat" to Israel and claiming that he "would not make an agreement that would endanger the State of Israel."

"A Palestinian state, especially after 7 October? Do you know what that is? There was a Palestinian state in Gaza, led by Hamas, and look what we got," the premier said.

Netanyahu even claimed an agreement with Riyadh was "imminent," noting that Saudi Arabia had not asked for the creation of a Palestinian state as a condition for Israeli normalization.

"I think peace between Israel and Saudi Arabia is not only feasible, I think it's going to happen," he claimed.

Netanyahu's remarks were quickly followed by a Saudi press statement affirming that Saudi Arabia's stance on Palestinian statehood "remains firm and unwavering."

"His Royal Highness emphasized that Saudi Arabia will continue its relentless efforts to establish an independent Palestinian state with East Jerusalem as its capital, and will not establish diplomatic relations with Israel without that," the statement read.

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