BETHLEHEM (Ma'an) -- President Mahmoud Abbas said Sunday that Israeli premier Benjamin Netanyahu told him he could not extend the settlement moratorium "because he fears his government might collapse."

In an interview with Israel's Channel 1, Abbas further said "the government isn't more valuable than peace, neither is it more valuable than the future of both peoples."

Asked if he would dissolve the Palestinian Authority if negotiations failed -- a point the president brought up during the Arab League meeting last week -- Abbas said "the choice hasn't been considered. However, all choices are open. Israel currently occupied Palestinian land but without bearing any responsibility."

The president further said the PA would not recognize Israel as a Jewish state. "We recognize Israel. But if you want to be recognized as a Jewish state, that is your own choice. However, you cant ask Egypt, Jordan and the rest of the world for such recognition.

"You can do whatever you want, but that is not my business," Abbas said.

Abbas further said the international community has repeatedly called for a halt to Israel's illegal settlement activity in the West Bank since US President Barack Obama came to office, and therefore it was reasonable to expect him to make similar demands of Israel in exchange for talks.