Prime Minister Binyamin Netanyahu said Sunday evening that the only way the Palestinian Authority would achieve anything was through negotiation – not unilateral action.

Addressing threats that the PA was planning to declare a Palestinian state unilaterally in the areas of Judea, Samaria and Gaza that it controls, Netanyahu told the Saban Forum in Jerusalem Sunday that "there is no substitute for negotiations between Israel and the PA. Any other method will just render useless the framework agreements we already have, and will only lead to unilateral actions on the part of Israel. The way to peace is through negotiations while sitting around the table together," Netanyahu said.

The Prime Minister dismissed declarations by senior PA officials that they would soon declare a Palestinian state without a final-status agreement. "We are prepared to take important steps in order to achieve a true peace to bring an end to the conflict and of course to ensure Israel's security," Netanyahu said.

Peace, he added, would be good for Arabs living in PA-controlled territory. "The Palestinians will have a life of honor, national independence, and unprecedented progress in many areas. In an era of peace we will see towers shoot their way up instead of missiles. The Palestinian economy will produce thousands of jobs, drying up pockets of poverty and hopelessness, and marshalling the inner strength to oppose terror," Netanyahu said.

Earlier, former U.S. President Bill Clinton spoke at the event, telling attendees that they should not think of President Barack Obama as an enemy. "You mustn't think that Obama is your enemy, and you know that Hillary isn't either," Clinton said. "The United States cannot force you to do something you don't want to do. We are committed to your security. I don't think you should be negative about the Obama administration," he added.