The American government is very determined to reach a peace agreement between Israel and Saudi Arabia in the coming year. The hot-button issue between Israel and the Americans, as well as in the domestic political system, is the possible compensation to the Palestinians if the normalization deal comes to fruition.

Israel National News has learned from an American government source that one of the offers that were raised in an attempt to reach normalization is an Israeli agreement to recognize a Palestinian state and, at the same time to transfer parts of Area C, which is under Israeli military control, to Area B, where the authority is split between Israel and the Palestinian Authority.

The offer will most probably be declined since these two compensations will lead to the dissolution of the government by Netanyahu's right-wing partners.

MK Avichai Buaron (Likud) reacted to the report, "It sounds baseless that someone in Israel would agree to give up another centimeter of Area C. I don't believe it. You have to understand the Gav Hahar region (in Samaria) is 10% to 15% Israeli. The PA is choking us since it builds on the edges of Area B near Israeli communities and roads with the aim of choking the Israelis. This is political construction, not actual construction for residences.... Read More: Arutz-7