JERUSALEM - An Israeli TV station has disclosed that Israeli Prime Minister Benjamin Netanyahu has agreed to negotiate a border with a Palestinian state based on the pre-1967 cease-fire lines that mark off the West Bank.

A senior Israeli official said he would not deny the report.

Up to now Netanyahu refused to accept the formula, insisting that Israel would not withdraw from all of the West Bank. The report said Netanyahu agrees to use the cease-fire line as a basis, while trading territory with the Palestinians to allow Israel to keep its main West Bank settlements, in line with a proposal by President Barack Obama.

The official spoke Monday on condition of anonymity because contacts are ongoing.

The official said Netanyahu insists the Palestinians recognize Israel as a Jewish state.