BBC
The Palestinian President, Mahmoud Abbas, has said he hopes to reach a comprehensive peace deal with Israel's government "within one year".
Mr Abbas also told Israel's Maariv newspaper that US President George W Bush wanted to see a Middle East peace accord before he leaves office in 2009.
A "final formula" would have to be agreed and a timetable set, he added.
The announcement came after a report in another Israeli newspaper outlined the terms of the possible peace offer.
Haaretz said on Wednesday that Israel was ready to offer the Palestinians a state in 90% of the West Bank and Gaza Strip.
The proposal would also include a tunnel to link the two Palestinian territories, and a land-swap that would allow major Jewish settlement blocs in the West Bank to become part of Israel..........
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