The Zionist entity’s top negotiator warned Wednesday that failure in peace talks could lead to the establishment of a Palestinian state with international backing on terms unfavorable to the Zionist part.

The Zionist entity's top negotiator warned Wednesday that failure in peace talks could lead to the establishment of a Palestinian state with international backing on terms unfavorable to the Zionist part.

"Stalemate can lead to a Palestinian state that would be forced on us - not as the outcome of negotiations that represent the Israeli interest," Justice Minister Tzipi Livni, who heads the Zionist negotiators at the so-called peace talks, told a meeting of the World Jewish Congress in Jerusalem.

"When there is no peace process, there is no legitimacy to act in order to keep Israel's security. So stalemate is against Israel's security needs," she said in a recording released by organizers.

"I believe in the peace process not as a favour to Europe or to the United States of America. It is our own interest," she said.

Livni added that while Israel has a strong military, continued US support was also vital for the Jewish state.

"Security is guaranteed by more than just militaries. Our security is also guaranteed by our relationship with the USA," Livni's spokeswoman quoted her as telling the congress.

A Palestinian official said on Tuesday that negotiators from the two sides held a new round of peace talks in Jerusalem the day before, focusing on the issue of water resources.

Monday's session was attended by Livni and Palestinian negotiators Mohammad Shtayeh and Saeb Erakat, the official said.

The entity of occupation controls most of the underground water resources in the West Bank, and the Palestinians demand a more equitable share of them.