The 22 members of the Arab League on Saturday rejected Washington's new policy on the Israeli-Palestinian conflict, saying it was a threat to security and stability in the Middle East.
US President George W. Bush said this week that Israel might be able to retain parts of the occupied West Bank and that Palestinian refugees should give up hope of regaining their homes in what is now Israel.
At the request of Palestine, a full league member, the Arab League held a special session in Cairo at permanent representative level on Saturday to respond to Bush.
"The council affirmed unanimously that it rejects the new American position, which is likely to wreck the peace process in the Middle East," an official statement said.
"This position encourages Israel to persist in its aggression against the Palestinian people and its threats to security and stability in the region," it added.
"(The council) calls on the United States to do what is necessary to prevent the collapse of the principles of the peace process," the statement said.