Both sides have to have incentives for negotiations in good faith. That would mean the Israeli government would need incentives too. With the PA already willing to recognize the Israeli conquests prior to 1967, the green line would be the logical starting place for temporary borders. Letting the settlers live under PA law until negotiated 1:1 land and resource swaps are finalized along with and Chunnel-like corridor to Gaza. It is certain that building permits in the Territories would be just as generous to Jews as they are in Israel to non-Jews. The same would apply in Jerusalem. This would, however encourage good faith negotiations as few Israeli settlers would like to be treated as they treat Palestinians for long.
Police disperse hundreds in brawl in Kafr Manda, northern Israel (Haaretz)
from the article: Netanyahu mulls interim agreement with Palestinians