The United States on Sunday condemned remarks by the spiritual leader of Israel's leading ultra-Orthodox party, Rabbi Ovadia Yosef, who said the Palestinians should "perish".

"We regret and condemn the inflammatory statements by Rabbi Ovadia Yosef," U.S. State Department spokesman Philip J. Crowley. "These remarks are not only deeply offensive, but incitement such as this hurts the cause of peace."

"As we move forward to relaunch peace negotiations, it is important that actions by people on all sides help to advance our effort, not hinder it."

Yosef had said during his weekly Shabbat sermon that the Palestinians, namely Palestinian President Mahmoud Abbas, should perish from the world. Yosef, a founder of the Shas Party, also described Palestinians as evil, bitter enemies of Israel.

"All these evil people should perish from this world ... God should strike them with a plague, them and these Palestinians," Yosef had said.

The 89-year-old is a respected religious scholar but is also known for vitriolic comments about Arabs, secular Jews, liberals, women and gays, among others.

Prime Minister Benjamin Netanyahu on Sunday distanced himself from Yosef's remarks, but stopped short of a condemnation.

"Rabbi Ovadia Yosef's remarks do not reflect Netanyahu's views, nor do they reflect the stance of the Israeli government," Netanyahu's office said in a statement.

"Israel plans to take part in peace negotiations out of a desire to advance toward a peace agreement with the Palestinians that will end the conflict and ensure peace, security and good neighborly relations between the two peoples," the statement continued.

Chief Palestinian negotiator Saeb Erekat slammed Yosef's remarks, saying they were paramount to incitement to genocide.

Erekat called on the Israeli government to denounce the remarks by Israel's former chief rabbi Ovadia Yosef, and to take action against racist remarks by other elected officials.