Israel's acting Prime Minister, Ehud Olmert, has said Israel will retain east Jerusalem, the Jordan Valley and larger settlements in the West Bank in any final peace deal with the Palestinians.
Mr Olmert also indicated that some West Bank territory would have to be given up as settlements are consolidated.
In his first television interview since stepping in as caretaker for Ariel Sharon, Mr Olmert said he hopes to pursue peacemaking with the Palestinians, but indicated that in the absence of a deal Israel could take unilateral moves.
Commentators say fresh negotiations appear unlikely in the short term following the emphatic victory by the militant group, Hamas, over the ruling Fatah party in Palestinian parliamentary elections last month.
