land on which the settelments are built from the Palestinian state for say 25 years. In this case technically the land belongs to the state of Palestine while in practice it continues to be run by Israel while confidence is built during these "lease" year. When the lease is over the settlers can either stay as Israeli citizens living in Palestine or move somewhere else. The lease may be extended on 5-10 yearly basis for say another 25 years until such time both parties feel very much at ease with each other and peace has established firm roots.
Condition of woman seriously wounded in Jerusalem stabbing attack slightly improves (Haaretz)
from the article: Peace Plan: Trading settler Israelis for refugee Palestinians