"We would all like a diplomatic solution, but it needs to be a real solution," said Netanyahu, adding that this would involve Iran halting uranium enrichment and centrifuge work in the same way as Syria was allowing its chemical weapons arsenal to be destroyed.
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"We believe it is possible to reach a better agreement," Netanyahu added, "but it requires us to be consistent and persistent."
Netanyahu noted that Israel and Russia had a shared interest in ensuring that Iran does not develop nuclear weapon, stressing that the Islamic republic must be forced to stop enriching uranium and cease all nuclear activities.
Speaking as talks got under way in Geneva between Iran and world powers, Putin for his part said he hoped that "in the nearest future a mutually acceptable solution is found" to end the crisis.
US Secretary of State John Kerry said on Wednesday the issue of whether Iran will ultimately be allowed to enrich uranium will not be decided in an interim deal under discussion between major world powers and Iranian officials in Geneva.
"Whatever a country decides or doesn't decide to do, or is allowed to do under the rules, depends on a negotiation," Kerry told reporters.
"We are at the initial stage of determining whether or not there is a first step that could be taken, and that certainly will not be resolved in any first step, I can assure you," he added.
Earlier Wednesday, it was reported that Iran and world powers finished their first session of crunch talks on Wednesday after only five to 10 minutes, diplomats said.
"This was just a brief introductory session," one diplomat in Geneva said on condition of anonymity. "There will now be bilateral meetings."
Earlier AFP reported that Iran and six world powers began talks seeking a breakthrough in the decade-old standoff over Tehran's nuclear program, an AFP journalist said.
Representatives from Iran and the United States, China, Russia, France, Britain and Germany were meeting in Geneva for the third time since the election of Iranian President Hassan Rohani in June.
AP, Attila Somfalvi, Yitzhak Benhorin contributed to this report
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