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He also called on Obama to pull out Lieutenant-General Keith Dayton, the US security co-ordinator in the region, who is supervising the training of Palestinian forces in the West Bank.

"The call by the Israeli leader for a Jewish state is nothing but a racist call, no different from Nazis and other calls denounced by the international community."

"Peaceful resistance works for a civil rights struggle, not in front of an occupation armed to the teeth."

"We appreciate Obama's new language towards Hamas. And it is the first step in the right direction towards a dialogue without conditions, and we welcome this," he said.

Netanyahu has been aware of the letter's content for some time, according to his senior adviser, Ron Dermer. Dermer said that despite the letter's language, the important issue was that of underlying policy. var adsonar_placementId=1392266; var adsonar_pid=952767; var adsonar_ps=10912223; var adsonar_zw=200; var adsonar_zh=200; var adsonar_jv='ads.adsonar.com'; "On the substance, I don't think there's a difference in our position and the position of AIPAC," he said.

It is understood that the letter is being advanced despite its discrepancy with the prime minister's stated positions, because its content reflects both longstanding American policy and longstanding AIPAC positions.

Several versions of the letter are included in the kits being given out to participants in this week's AIPAC conference. One version, bearing a "United States Senate" letterhead, addressed to Obama, and left open for signature, states: "We must also continue to insist on the absolute Palestinian commitment to ending terrorist violence and to building the institutions necessary for a viable Palestinian state living side-by-side, in peace with the Jewish state of Israel." This version also gives explicit support for programs such as the US-supervised training of Palestinian Authority security forces. "The more capable and responsible Palestinian forces become, the more they demonstrate the ability to govern and to maintain security, the easier it will be for [the Palestinians] to reach an accord with Israel," it states. "We encourage you to continue programs similar to the promising security assistance and training programs led by Lieutenant-General Keith Dayton, and hope that you will look for other ways to improve Palestinian security and civilian infrastructure."

A second, similar version, also addressed to Obama and signed by staunchly pro-Israel Majority Leader Stony Hoyer and Republican Whip Eric Cantor, sets out a series of "basic principles" that, if adhered to, offer "the best way to achieve future success between Israelis and Palestinians." Among the principles cited is the requirement for the two parties to directly negotiate the details of any agreement, the imperative for the US government to serve as "both a trusted mediator and a devoted friend to Israel," and the need for Arab states to move toward normal ties with Israel and to support "moderate Palestinians." The clause that discusses statehood demands "an absolute Palestinian commitment to end violence, terror, and incitement and to build the institutions necessary for a viable Palestinian state living side by side in peace with the Jewish state of Israel inside secure borders." It continues: "Once terrorists are no longer in control of Gaza and as responsible Palestinian forces become more capable of demonstrating the ability to govern and to maintain security, an accord with Israel will be easier to attain."

A third version of the letter, addressed to their colleagues, is signed by Senators Christopher Dodd, Arlen Specter, Johnny Isakson and John Thune. It states that "we must redouble our efforts to eliminate support for terrorist violence and strengthen the Palestinian institutions necessary for the creation of a viable Palestinian state living side-by-side, in peace with Israel."

Netanyahu has long indicated that his concerns about Palestinian statehood are practical, rather than ideological - arising from the fear that a fully sovereign Palestinian state might abuse its sovereignty to forge alliances, import arms and build an offensive military capability to threaten Israel.