“We will not accept a fragmented state, and we refuse all interim and transitional solutions. The eastern border of the state of Palestine is Jordan," said caretaker Prime Minister Salam Fayyad on Sunday.

Fayyad's comments follow former Defense Minister Shaul Mofaz's initiative to announce a Palestinian state on temporary borders, a proposal staunchly rejected by Palestinians officials.

It was further reported in the Israeli media last week that President Shimon Peres and Defense Minister Ehud Barak were discussing options to resume peace talks with the Palestinian side, including the declaration of Palestinian state on interim borders while Israel draws up a withdrawal plan from remaining territory.

Fayyad's speech was given at a graduation ceremony for police officers in Al-Fari'a in the Jordan Valley.