Shimon Peres has described Palestinian plans to unilaterally declare statehood at the UN as "an illusion".

The Israeli President told the Associated Press that it could be possible to conclude an agreement with the Palestinians" before September. But even if that did not happen, he said such a move would be meaningless.

"It will remain on paper and it will raise false hopes," he said.

He said that if the UN could not resolve issues of terrorism, Iran and arms smuggling "what is the value of their resolution?"

Last month US President Barack Obama warned that "symbolic actions to isolate Israel at the United Nations in September" would not lead to the creation of an independent Palestinian state.