Mr Raab added: "This is a first step on the road back to negotiations.
“The absence of dialogue creates a vacuum that only fuels instability and leads to the drifting of the two sides further and further apart, so whatever the different views, we want both sides to get around the negotiating table to work to improve the plan and to get peace in the Middle East.”
Responding during Foreign and Commonwealth questions to an intervention from Labour MP Chi Onwurah, who said the Trump plan only “paves the way to further conflict”, Mr Raab said: "I have spoken to the Americans. I also spoke to President Abbas on January 27.
“The reality is that whatever concerns any side has about this set of proposals, they will get resolved and improved only with both sides around the negotiating table. Rejectionism—the current vacuum—is only making matters worse.
"We would like to see peaceful dialogue and a negotiated solution, and that must be based on the two-state solution and the principles of international law.”
Labour’s Khalid Mahmood asked why the government continued to support a plan rejected by the Arab League and the Organisation of Islamic Cooperation.
Mr Rabb said: "We support it along with the Saudis, the Egyptians, the Omanis and Qatar. They have all given statements saying that it is a first step on the road to negotiations that can resolve the conflict.”
On Tuesday, outgoing Labour leader Jeremy Corbyn wrote to Prime Minister Boris Johnson demanding “urgent clarification of his government's position on Trump's 'peace plan' for Israel - Palestine.”
His letter listed a string of demands including the “right to return” of Palestinian refugees “who were forced to flee their homes in 1948, or subsequently have the right to return to those homes.”
