Prime Minister Benjamin Netanyahu's attempt to pass a Jewish state law in the Knesset is a euphemism for blowing up the last chance to reach a two-state solution along the 1967 lines, a senior Palestinian official said Thursday.

Responding to Netanyahu's announcement on Thursday that he plans to push forward a new Basic Law to "legally anchor" Israel's status as "the nation-state of the Jewish people," the Palestinian official issued a statement that the PLO already recognized Israel in 1988 and again in the 1993 mutual recognition agreement signed by Yasser Arafat and Yitzhak Rabin.

"If Netanyahu wants to push the Palestinians into the corner he should also remember that the only reference to the Jewish State is the 1947 UN Resolution 181. The Palestinians, as such, will be ready to consider recognizing Israel as the Jewish State only based on Resolution 181. Nothing more. Nothing less," the official said.

Knesset Member Mohammed Barakeh (Hadash) said Netanyahu's announcement complements the slew of racist legislation in the Knesset in recent years and that such a law would make Israel the first racist country in the 21-st century. Barakeh added that the passing of such a bill would revive the international community's definition of Zionism and racism.

Netanyahu said on Thursday that he believes the most "basic ingredient in our national lives will win legal status just as other central ingredients that constitute our fundamental core that have already been ruled into the Basic Law of Knesset."

"Unfortunately, as we have seen recently, there are those who do not recognize this natural right and who seek to appeal the historical, legal and moral justification for the existence of the state of Israel as the nation-state of our people," he added. "I see it as one of my basic missions as prime minister to fortify the state of Israel as the nation-state of our people."