It did so in the Oslo Accords. Then a jewish extremist came along and shot Rabin preventing Israel to reciprocate that act. As for recognizing it as a Jewish state: keep dreaming. That is never going to happen. Give Israel a cookie and it will bite your hand.
Palestinians report IDF airstrikes on Islamic Jihad targets in southern Gaza Strip (Haaretz)
from the article: Hamas: Next Palestinian government will be located in Gaza