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UN Secretary-General Antonio Guterres hopes that the agreement between Israel and the UAE on the normalization of relations will help implement the decision to create two states with the Palestinians for peace in the Middle East.

Israel and the UAE agreed to normalize relations in a landmark deal in which Izrial pledged to suspend the annexation of Palestinian lands.

Guterres said the annexation would effectively close the door for negotiations between Israeli and Palestinian leaders and destroy the prospects of a viable Palestinian state in the framework of the two-state solution.

The Secretary-General welcomes this agreement, hoping that it will create an opportunity for Israeli and Palestinian leaders to resume constructive talks that will lead to the implementation of a two-state solution in accordance with relevant UN resolutions, international law and bilateral agreements, spokesman Guterres said in a statement.

Israeli Prime Minister Benjamin Netanyahu said earlier that this is a historic day and it will usher in a new era for the Arab world and Israel.

But the Palestinians flatly rejected the deal, calling it a betrayal. Palestine recalled its ambassador from the UAE.

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