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Arab leaders holding a summit in the Saudi capital, Riyadh, have urged Israel to accept an Arab peace initiative first proposed in 2002.
Under the plan, Arab nations would recognise Israel if Israel withdrew from land occupied in the 1967 war.
The plan allows for the creation of a Palestinian state and the return of Palestinian refugees.
Five years ago Israel rejected the plan but now the Israelis are reacting more positively to it, correspondents say.
Urging Israel not to immediately ask for amendments to the plan as it had five years ago, Arab League head Amr Moussa said the Middle East was at a crossroads.
"It is either we move towards a real peace or see an escalation in the situation," he told Arab League leaders in Riyadh.