He said opening talks quickly would “create a climate in which everybody feels a greater investment in success.”
Mr Netanyahu repeated his promise that Israel was ready for direct talks. He said that there were concrete steps that could be taken “now - in the coming days, in the coming weeks - to move the peace process further along in a very robust way."
Mr Obama also said America remains “unwavering” in its commitment to Israel's security.
He said: "We strongly believe that, given its size, its history, the region that it's in, and the threats that are leveled against us - against it, that Israel has unique security requirements.”
"It's got to be able to respond to threats or any combination of threats in the region.
In the meeting Mr Obama cautioned against singling out Israel at International Atomic Energy Agency talks in September.
He said otherwise a Middle East nuclear conference planned for 2012 was unlikely to go ahead.
Mr Netanyahu will follow his time in Washington with a policy speech in New York.
