The Israeli Prime Minister, Ehud Olmert, has been discussing plans to set permanent borders for Israel with his British counterpart, Tony Blair.
Mr Olmert pledged to make every effort to seek a deal with the Palestinians before drawing borders unilaterally.
At a news conference, the two men agreed that negotiations could be held only if there was a renunciation of violence and an adherence to the peace 'road map'.
Mr Blair told reporters he thought the Israeli Prime Minister wanted peace with the Palestinians.
Earlier, three Palestinian militants were killed in Israeli air strikes in Gaza.
Two Hamas militants and a member of the Islamic Jihad faction died hours after an Israeli civilian was seriously wounded in a rocket attack on his home.
The new bloodshed comes as Israel tries to contain the fallout from the deaths of eight Palestinian civilians in an explosion on a beach in the northern Gaza Strip on Friday. The incident prompted Hamas to end its 16-month truce.
Israeli Defence Minister Amir Peretz said Hamas political leaders may also be targeted if they are found to be implicated in the missile attacks.
Meanwhile, Palestinian President Mahmoud Abbas has announced that a referendum will be held on 26 July.
Voters will be asked to approve calls for an independent Palestinian state on land conquered after the 1967 war, the creation of a national unity government and an end to attacks within Israel.
Mr Abbas, a moderate from the formerly dominant Fatah faction, has faced accusations from Hamas that he is engineering a coup against the Hamas government formed after a landslide election win in January.
