The Palestinian President, Yasser Arafat, has said Palestinians will continue their struggle for an independent state and has insisted on the right of Palestinian refugees to return to what is now Israel.
His comments are his first official response to last night's statement from the US President, George W Bush, and the Israeli Prime Minister, Ariel Sharon.
Mr Bush has endorsed a plan by Mr Sharon to withdraw completely from the Gaza Strip, but retain some settlements in the West Bank.
The UN Secretary General, Kofi Annan, has voiced reservations about the plan, saying that any peace deal should be negotiated based on UN resolutions.
The EU has said there can be no unilateral change in the Middle East's borders.
Foreign Affairs Minister Brian Cowen, speaking on behalf of the European Council, said any change to pre-1967 borders - before Israel occupied the West Bank and Gaza - must be agreed between the parties.
The EU Foreign Policy Chief, Javier Solana, welcomed Israel's planned withdrawal from the Gaza Strip as a chance to restart the Middle East peace 'roadmap'.
