Perhaps the United Nations could declare a Palestinian state on the whole land from the Mediterranean to the Jordan, and declare the same for Israel. That would make Israel and Palestine a condominium, that is, two countries have sovereignty over the same land. The relationship between the two countries would be equal. Both countries could bring their disputes to the United Nations to solve, if they can't work things out themselves, as equal. Israel could be the state for Jews; Palestine, the state for everyone else.
17-year-old Palestinian killed by IDF on Friday laid to rest near Ramallah (Haaretz)
from the article: Report: France 'won't rule out' UN creation of Palestinian state