Ramallah Prime Minister Salam Fayyad said Monday that the Palestinian state would be established on all territories occupied in 1967.

"On 1967 territories, there are no disputed areas. There is no A, B, or C area, nor are there H1 or H2 zones. It is all Palestinian territory that has been occupied since 1967," Fayyad said.

"The independent Palestinian state will be on all these territories including the West Bank, the Gaza Strip, and Jerusalem, the eternal capital of Palestine."

The PA prime minister's remarks came during a visit to Hebron, where he inaugurated a new community center.

"Our people believe triumph is inevitable and the task will be completed. We will get our freedom and independence and establish an independent state with Jerusalem as its capital. The Palestinian people do not need anybody's permission to do that," Fayyad said.

The Palestinian Authority premier said the government would continue to build institutions to prepare for statehood.

Israeli Prime Minister Benjamin Netanyahu recently insisted Israel would not accept a Palestinian state on 1967 borders, claiming the lines were "indefensible."

His remarks came amid a public spat with President Barack Obama who had for the first time given public voice to the long-held US view that a Palestinian state be created based on the borders that existed before the 1967 Six Day War.

The view has already been accepted by Israeli negotiators, from as early as 2000 and the Quartet's work mediating the Roadmap agreement. The 1967 borders as a basis for a Palestinian state was also the foundation of the talks that started and stalled in September 2010.

According to Netanyahu's newest formulation, a Palestinian state would include the Gaza Strip, the occupied West Bank and most of Israel-annexed East Jerusalem, with some adjustments so that Israel could maintain settlement blocs that cut in some places as many as 22 kilometers into Palestinian lands.