The US President, George W Bush, and the Israeli Prime Minister, Ehud Olmert, have discussed the setting of Israel's final borders as part of a peace settlement in the Middle East.
At a news conference after talks in Washington, Mr Bush said he hoped an agreement could be made based on the so-called road map to peace agreed in 2002.
Although describing Israeli plans for the unilateral redrawing of Israel's boundaries in the West Bank as 'bold', Mr Bush said that Mr Olmert's ideas could lead to a Palestinian state living side by side with Israel under the auspices of the road map peace plan.
But he also reiterated his stand that Israel should not wait forever for a Palestinian partner in negotiations. Mr Bush said that 'no country can be expected to make peace with those who deny its right to exist and who use terror to attack its population'.
Mr Olmert said he would work to try to make peace with the Palestinians, but added that the Hamas-led government stood in the way of peace.
Boost for Israeli withdrawal plan
The Israeli Prime Minister's three-day visit comes only weeks after forming a coalition government led by his centrist Kadima party, which has vowed to end Israel's presence in most areas of the occupied West Bank by 2010 even without Palestinian agreement.
The words of support that Mr Bush offered to Mr Olmert's plan, albeit on condition that he at least attempt to reach a negotiated settlement with the Palestinians, gives a major boost to Israel's future efforts to secure national and international support.
Until the emergence of Hamas, which Washington considers a terrorist organisation, US officials had consistently warned Israel against taking any unilateral action that would compromise final-status negotiations.