"What prevents the achievement of this desire is Israel's continuation of its occupation and settlement activity and imposing realities on the ground," said Abbas, speaking at a regional World Economic Forum conference in Jordan.
Abbas did not refer to the changed circumstances created by the formation of a new hard-line Israeli government this month; key members of which oppose land concessions to the Palestinians.
A US-led negotiation effort broke down about a year ago, and current prospects for resuming them are slim.
The prime minister has voiced support in recent years for a Palestinian state but seems very far from the Palestinians' terms. During his campaign he said he did not expect a Palestinian state to soon arise, but later slightly back tracked.
Speaking at the same conference on the shores of the Dead Sea, former Israeli President Shimon Peres said most Israelis nonetheless supported the principle of a Palestinian state.
"I'm convinced that there will be no better alternative (to) the two-state solution," said Peres, who is also a former prime minister. "I believe it is possible. I believe it is needed. I believe that peace negotiations can be resumed and the sooner the better."
Many moderate Israelis are concerned that the default outcome is a single state in which Jews will not be the majority and which, if Jews continue to dominate it, would cease to be considered a democracy.
