"Israel deeply appreciates the decision by President Obama to veto the Security Council resolution," a statement from Prime Minister Benjamin Netanyahu's office said after the council session on Friday night.

"Israel remains committed to pursuing comprehensive peace with all our neighbours, including the Palestinians," it said. "We seek a solution that will reconcile the Palestinians' legitimate aspirations for statehood with Israel's need for security and recognition."

Israel's foreign ministry called for a resumption of direct peace talks between the sides.

"It's a short way between Ramallah and Jerusalem, and all the Palestinians should do is to return to the negotiating table without preconditions," ministry spokesman Yigal Palmor said in a statement.