Former Military Intelligence chief Amos Yadlin said Tuesday that Israel must "take its destiny into its own hands" without waiting for Palestinian consent.
Speaking at a Calcalist conference in Tel Aviv, Yadlin called for a proposal for the establishment of a Palestinian state "otherwise we will lose international support."
The former MI chief explained that the Palestinian strategy is to avoid peace with Israel. "They listen to what we say, and we're saying there won't be peace.
"Israel will be wiped out if there is no two-state solution and they say 'why not.' Israel needs to take ownership of its own destiny and not wait for the Palestinians to give consent."
Yadlin's comments came in the backdrop of an internal Likud debate about its joint platform with Yisrael Beiteinu.
Prime Minister Benjamin Netanyahu declared this week he stands by his famous Bar-Ilan speech about a demilitarized Palestinian state while members of his party called to abandon the two-state solution.
"As long as the Palestinians want to continue this conflict, there is no room to create a state," Minister Gideon Sa'aer said at Ynet's TV studio on Monday.
Yadlin is proposing presenting the Palestinians with the same proposal that Clinton put forward. "Sadly, knowing the Palestinian position they will likely reject it but it will restore out legitimacy.
"Otherwise we'll lose international support and as previously explained in this forum Israel's economy suffers when it loses its moral leadership role. Israel's economy will flourish, as it did in the 1990s, if we put forward a plan that is perceived in the world as just and moral."
Addressing the Iran issue, Yadlin praised the United States for negotiating with Tehran. "I offer the following test to see whether this strategy is good or bad for Israel: If a compromise pushes the centrifuges' clock six months backwards it's an important achievement. If the Americans achieve it, we should back it."
Meanwhile, Meretz presented its plan to "overcome the deadlock and welcome peace." The party proposes cancelling the Oslo Accords and laying down a new outline based on the Arab peace initiative under the Quartet's auspices.