Ahead of last week’s election in Israel Mr Netanyahu had suggested a Palestinian state would not be created while he was leader. He has since attempted to row back from that position.
The Downing Street spokesman said Mr Cameron had “reiterated that as a firm friend of Israel, the UK continued to believe that a two-state solution was the best way to achieve a lasting peace and to secure Israel’s long-term security and prosperity.
"The two Prime Ministers also discussed the negotiations on Iran’s nuclear programme, agreeing that it was essential to prevent Iran from acquiring nuclear weapons."