AFP - Palestinian president Mahmoud Abbas reiterated on Saturday his rejection of any interim accord with Israel for a Palestinian state with provisional borders.

"This project was already submitted to us and, if it is presented again, we will reject it again," Abbas said at a news conference with visiting Chilean President Sebastian Pinera.

"The time has come for a Palestinian state based on the 1967 borders to become, in September, a permanent member of the United Nations," he said.

Sources close to Israeli Prime Minister Benjamin Netanyahu have said he is due to deliver a key speech in May in Washington announcing a new diplomatic bid towards the Palestinians.

The initiative would stipulate a long-term "interim agreement" with the Palestinians, rather than negotiations, on a final settlement, Israeli media reported.

Direct peace talks between the two sides broke down last autumn over an intractable dispute about persistent Jewish settlement expansion in the occupied West Bank.

The Palestinians say they will not negotiate while Jewish settlers build on land they want for a future state, but Israel has refused to freeze construction, leaving the negotiations at a dead end.

The Palestinians have also embarked on an campaign to clinch international support for the recognition of an independent Palestinian state based on borders that existed before the 1967 Six-Day War.

During that conflict Israel seized the West Bank and the Gaza Strip, as well as east Jerusalem -- the mostly Arab part of the city now annexed by Israel that the Palestinians want as the capital of their future state.

The Chilean president, whose country announced its recognition of a Palestinian state in January, began a visit to Israel and the Palestinian territories on Thursday.

He meets Netanyahu on Sunday.

On January 7, Santiago announced it was formally recognising a Palestinian state, following in the footsteps of Brazil, Argentina, Bolivia and Ecuador.

But, unlike its neighbours, Chile did not specifically refer to a Palestinian state within the 1967 borders.