That would be a significant shift for Netanyahu, who has made clear in the past that he does not think the Palestinians are ready to rule themselves. But that position has put him at odds with long-standing U.S. policy that supports Palestinian statehood as the cornerstone of Mideast peace efforts.

Senior White House officials said Obama’s meeting with Netanyahu Monday is "part of his commitment that he’s made since day one of the administration to pursue comprehensive peace in the Middle East, including a two-state solution between Israel and the Palestinians."

Israeli Defense Minister Ehud Barak said he thought an agreement with the Palestinians could be achieved within three years.