But in an address to US supporters of Israel at the start of May Mr Netanyahu said he favoured a "triple track" approach.
Nearly three years ago Mr Netanyahu said he accepted the principle of two states, Jewish and Palestinian, existing side by side in peace and security.
Mr Netanyahu said he had decided to pull the date forward because bickering among his coalition partners had made it impossible to pass a "responsible budget" for 2013.
"But before he left Israel, Mr Netanyahu said he would not allow anything to compromise Israeli sovereignty in Jerusalem, part of which is also claimed by the Palestinians as a capital, " he said.
On Syria, Mr Netanyahu said he and President Obama shared the same goal of seeing a stable and peaceful country emerge, and that they were determined to prevent Syria's chemical weapons from falling into "terrorist hands".
Mr. Netanyahu said he hoped to form a broad government including parties from across the political spectrum.
Mr Netanyahu also said he was willing to go to Damascus, Riyadh and Beirut in pursuit of a Middle East peace deal.
Mr. Netanyahu said he looked forward to working together during the next four years, noting that in an unstable Middle East, the need for the U.S.-Israeli alliance is greater than ever.
Mr Lapid has said he will not join Mr Netanyahu's team unless the prime minister promises to push for peace with Palestinians.
On Friday, following two days of talks with Israeli Prime Minister Benjamin Netanyahu and Mr Abbas, he said that "hard decisions" would be needed for peace.
Mr Netanyahu has long championed settlements, but has also said he would be prepared to make "painful concessions" - alluding to some settlement withdrawals - in a final peace agreement with the Palestinians.
Mr Netanyahu called for an early election last October because he said bickering among his coalition partners made it impossible to pass a "responsible budget".
Before the two met, Mr Netanyahu said the US and Israel were "making headway" and said he hoped the two sides would "shortly be able to resume normal talks".
Mr Netanyahu, whose Likud-Beitenu alliance does not have a majority, has said he wants a broad coalition.
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