He warned that the window of opportunity for Israel and the Palestinians to agree to form a two-state solution was closing fast.
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Hague made the comments following statements by Minister Yuval Steinitz who told the Daily Telegraph that perceptions of Israel were more negative in Britain than in other countries.
Video courtesy of jn1.tv
Hague said that Britain strongly disagrees with "settlements on occupied land" and added that "We want to see both Israelis and Palestinians really commit themselves to the peace process while there is still a chance of a two-state solution."
Failure to do so, he said, would mean Israel will struggle to maintain the two characteristics it holds dearest - that it remains both a Jewish state and a democracy.
On Thursday, Hague met with Justice Minister Tzipi Livni in Jerusalem after which the latter said that mutual accusations between Israel and the Palestinians must stop.
As the minister charged with negotiations with the Palestinians, Livni said that the next few weeks will be critical for negotiations. "I hope the Palestinians realize that the goal is to restart talks and be focused," she added.
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