Israeli President Shimon Peres said on Monday Israel's new government wants peace with all Arabs but made no explicit mention of establishing a Palestinian state, a top U.S. and Arab priority.

"Israel stands, with her arms outstretched, her hands held open to peace with all nations, with all Arab states, with all Arab people," Peres said in a speech to the American Israeli Public Affairs Committee, the leading U.S. pro-Israel lobby.

Peres holds a largely ceremonial post but has great personal prestige as an elder statesman.

"The Palestinian people have the right to govern themselves," Peres, who has long supported the establishment of a Palestinian state as part of a peace deal, added, echoing a position adopted by Israeli Prime Minister Benjamin Netanyahu.

Netanyahu, who heads Israel's new, right-leaning government, has pledged to hold talks with the Palestinians on economic, security and diplomatic issues but has made no public promise to negotiate statehood.

Palestinian leaders have rejected any notion of an "economic peace" and have said U.S.-backed talks with Israel could not resume until Netanyahu committed to statehood.

Peace talks bogged down last year in disputes over statehood borders, and the fate of Jerusalem and Palestinian refugees. The Palestinians broke off the negotiations after Israel launched a Gaza offensive in late December.