Ramallah, Feb 19 (IANS): The Palestinian presidency has said that a Palestinian state with East Jerusalem as its capital was essential for resolving the conflict and ensuring stability in the region.

The statement by Presidential Spokesman Nabil Abu Rudeineh came on Sunday after the Israeli government unanimously rejected any "unilateral recognition" of a Palestinian state by other countries, Xinhua news agency reported.

Abu Rudeineh warned of "different and dangerous" challenges ahead and said the Palestinian position was firm against the "extremist and obstinate" Israeli stance and the "contradictory" US position.

He urged more Arab and international action to stop "aggression and war," and said Israel's continued attacks on Palestinians and their holy sites in Gaza, the West Bank, and East Jerusalem would not bring security and stability to anyone.

Israeli Prime Minister Benjamin Netanyahu said on Sunday that recognising a Palestinian state at this stage would be a "reward for terrorism" and would undermine the chances of a lasting peace deal.

The Palestinian Foreign Ministry said in a statement that the recognition of a Palestinian state by the United Nations did not need Netanyahu's approval or permission.

It said all countries could recognise the state of Palestine without any legal or political obstacles and accused Netanyahu of destroying the prospects of statehood by annexing and expanding settlements in the West Bank and East Jerusalem and isolating Gaza.