US Secretary of State Hillary Clinton on Wednesday said that a deal that would save peace talks between Israel and the Palestinians could still be worked out, however there exists no "magic formula" for breaking the impasse in negotiations, Reuters reported.

Clinton, speaking at a banquet hosted by the American Task Force on Palestine, said that both Prime Minister Binyamin Netanyahu and Palestinian Authority President Mahmoud Abbas were still committed to a two-state solution to the Israeli-Palestinian conflict.

"Negotiations are not easy, but they are absolutely necessary. It is always easier to defer decisions than it is to make them," Clinton said. "I cannot stand here today and tell you there is a magic formula that I have discovered that will break through the current impasse. But we are working every day to create the conditions for negotiations to continue and succeed," she added.

"I know there are those who think that if they wait, scheme or fight long enough, they can avoid compromising or negotiating. But I am here to say that that is not the case. That will only guarantee more suffering, more sorrow, and more victims," she said.