After a meeting with U.S. President Barack Obama Israeli Prime Minister Benjamin Netanyahu said Israel is ready to make concessions for peace but cannot go back to 1967 borders. Netanyahu also said that Palestinian Authority President Mahmoud Abbas must decide between its fresh reconciliation with Hamas and peace with Israel.

The comments come a day after Obama outlined his peace plan that calls for negotiations between Israel and the Palestinian Authority based on 1967 lines.

“Israel cannot negotiate with a Palestinian government backed by Hamas,” said Netanyahu, calling Hamas a “Palestinian version of al Qaeda.”

Netanyahu met with Obama in Washington on Friday. The leaders held a closed-door meeting in the Oval Office followed by a press session where each delivered statements.

Netanyahu rejected Obama's plan, citing the country’s security and demographic reality. Netanyahu’s aides have also pointed out the 1967 lines are not part of an agreed border but designated by Jordanian and Israeli fighters when a ceasefire was called in 1949 to end an earlier war.

Obama agreed that Hamas “is not a partner for a significant, realistic peace process,” saying Palestinians will ultimately need to resolve the issue of Hamas on their own. The president added that disagreements between the U.S. and Israel will remain, but that such disagreements happen “between friends.”