Trump to unveil Middle East peace plan 'in months'

US President Donald Trump said on Wednesday he would present details of his controversial two-state peace plan for the Middle East in the coming months, voicing confidence that the Palestinians would return to talks despite his unwavering support for Israel.

"I would say over the next two to three to four months," he said while meeting Israeli Prime Minister Binyamin Netanyahu on the sidelines of the UN General Assembly.

Trump for the first time said explicitly that he backed a two-state solution that would create an independent Palestine, saying.

"That's what I think works best, that's my feeling."

The president added that he is "very much in favor of what Israel is doing as far as their defence is concerned", he said.

Netanyahu thanked Trump for his "strong words yesterday in the General Assembly against the corrupt terrorist regime in Iran".

The two leaders' meeting in New York comes amid international calls for Israel to reconsider its planned demolition of a Palestinian village in the occupied West Bank.

The EU voiced its concern over this issue last week and affirmed its committment to a two-state solution with Jerusalem as the capital of both Israel and a new Palestinian state.

Trump was seen as throwing the peace process into further disarray earlier this year by moving the US embassy in Tel Aviv to Jerusalem.

This move broke with decades of US convention on the matter and gave Israel tacit support for its claim over Jerusalem as its undivided capital.

Most foreign governments have indicated that they will only recognise Jerusalem as Israel's capital as part of a comprehensive solution to the conflict with the Palestinians who also want the city to be the capital of their promised future state.