Israel’s Foreign Minister has delivered a blow to hopes of an independent Palestinian state in the near future.

Avigdor Lieberman said: “There is absolutely no chance of it before the year 2012”.

He said: "One can dream and imagine, but we are far from reaching an agreement."

Mr Lieberman said it is time for the Palestinians to make moves towards peace, as Israel had already made many steps.

Israel’s Prime Minister has blamed the Palestinians for stalling peace negotiations by refusing to engage in direct talks.

Benjamin Netanyahu called on the Palestinians to begin direct peace discussions “without delay and without preconditions”. He made the comments at a speech for fundraisers.

He added: “The Palestinians, regrettably, have made every effort not to resume the peace talks", while Israel, he insisted, "has made every effort to resume the peace talks”.

British schoolchildren are set to learn about the Israel-Palestine conflict thanks to a computer game devised in Denmark.

Global Conflicts: Checkpoints lets players take on the role of journalists reporting from the conflict.

The game is being used in more than 500 schools around the world. It has been designed for students aged 13 and above by award-winning company Serious Games Interactive, based in Copenhagen.

It is the second remake of Global Conflicts: Palestine, an educational game launched in 2007 that has been sold in more than 50 countries worldwide.

Palestinian President Mahmoud Abbas has said that peace in the Middle East could be achieved in just one week if Israelis were willing to negotiate. But in a surprise move, he expressed regret over the second intifada.

Speaking to Egyptian media, Mr Abbas said that both he and former Palestinian leader Yasir Arafat did not want the intifada in October 2000.

He said: “The second intifada was one of our worst mistakes. Arafat didn't want the intifada to erupt, but he couldn't stop it.”

During the past week Mr Abbas has made encouraging sounds about the proximity talks.

The BBC’s Middle East editor Jeremy Bowen has said that a report where he described the tension in US-Israeli relations as “enjoyable” was down to an editing glitch.

In his piece ‘Analysis: Bleak climate for Mid-East talks’ for the BBC News website, Mr Bowen wrote: “It has been an unusual and enjoyable new experience to be able to look on as the Israelis argued with their most important ally.”

US Special envoy to the Middle East George Mitchell has arrived in Israel ready to start new indirect peace talks between Israel and the Palestinians.

Israeli media have reported that the talks are gearing up to start as soon as Wednesday.

But the Palestinian Authority has refused to participate in the talks until it has the backing of the Palestinian Liberation Organisation, which will not meet until Sunday.

Talks, mediated by Mr Mitchell, were agreed last month but the PA cancelled after an Israeli announcement that new homes had been approved in Ramat Shlomo, east Jerusalem.

William Hague is in no doubt about the most urgent issue to face him if he finds himself in the Foreign Office next month.

"It's the Iranian nuclear programme," he says. "We have consistently been the party arguing for tough sanctions and a strong European approach over the last few years, and are very frustrated that this hasn't emerged strongly enough."

Danny Ayalon, Israel's deputy foreign minister, has announced that new peace negotiations with Palestinian leaders could start within a fortnight.

Israel’s Prime Minister Binyamin Netanyahu is due to fly to Cairo on Monday to discuss the talks, the first since 2008, with Egyptian president, Hosni Mubarak.

He told his Likud party in Tuesday that he had heard that Mahmoud Abbas, the Palestinian president “intends to renew the talks. I will be very glad if this will indeed be carried out next week,” he said.