"Our message is clear: if the Palestinians unilaterally proclaim an independent state, Israel will annex parts (of the West Bank) that it judges essential to its security," Health Minister Danny Naveh told public radio.
"The Palestinians are trying every trick in the book to avoid implementing the roadmap which demands that they put an end to terrorism," the minister added in reference to the peace plan drafted by an international quartet.
The Palestinian leadership said Saturday that it was mulling the possibility of unilaterally proclaiming an independent state on land occupied by Israel since 1967.
"The Palestinian leadership ... believes it has the right under international law and signed accords to work towards the creation of a democratic state in all territories occupied in 1967, with Jerusalem as its capital," said a statement issued after a meeting chaired by Palestinian leader Yasser Arafat (news - web sites).
The statement came after Palestinian prime minister Ahmed Qorei revived the idea of a bi-national state, which would abandon the prospect of two states living side by side. It would place Jews and Palestinians under common authority on land covering historic Palestine, from the Jordan river to the Mediterranean.
Palestinians have argued that Israel's continued settlement activity and building of a separation barrier, which at times juts deep into the West Bank, is undermining the viability of a two-state settlement.
Prime Minister Ariel Sharon (news - web sites) has warned that Israel will "disengage" from the bilateral peace process with the Palestinians if there is no crackdown on militants by Qorei's government in the next few months.
While there has been a marked downturn in Palestinian violence in recent months, Israeli authorities say that it is due to their success in foiling attacks.
A suicide bomber was killed Sunday when his device prematurely exploded near a settlement in the northern West Bank while another Palestinian was shot dead by Israeli troops in the area, sources on both sides said.
Witnesses said that body parts of the bomber could be seen scattered near the site of the explosion close to the settlement of Karnei Shomron, east of the town of Qalqiliya.
"One Palestinian exploded himself between the village (of Jinsafut) and the settlement," a Palestinian security source said.
An Israeli military source said: "It appears a suicide bomber prematurely detonated himself", adding that there were no Israeli casualties.
Meanwhile a Palestinian teenager was shot dead by Israeli soldiers near the troubled northern West Bank town of Nablus.
Fuad Jarwuan, 18, was fatally injured when Israeli soldiers aboard two jeeps opened fire to disperse a group of stone-throwing Palestinians in the village of Zeita, south of Nablus, Palestinian medical and security sources said.
An Israeli military source said that the shooting had taken place after the youth tried to throw a molotov cocktail.
Nine Palestinians have been killed in the Nablus area since December 26, when Israeli troops began an operation to round up wanted militants.
Sharon's disengagement plan is likely to see Israel evacuate a small number of settlements but in turn strengthen its control over others.
While the plan has angered Palestinians, settlers have also vowed to oppose what some have termed the forcible "transfer of Jews" by their one-time champion Sharon.
More than 100,000 people were expected to gather in Tel Aviv on Sunday evening to protest the evacuation plans in one of the biggest ever shows of strength by the settlers' movement.
Previous statements by Sharon, who once called on settlers to "seize the hills", were expected to be broadcast at the rally.
With the peace process between the Palestinians and Israelis at an apparent dead end, Sharon has come under pressure to react to peace overtures by Syria.
State media in Damascus on Saturday called on the United States to help restart Israeli-Syrian peace talks.
But Naveh, who is considered close to Sharon, said that Syria must end its support for the Lebanese-based Hezbollah movement and "Palestinian terrorist organizations" based on its territory if it wants to open talks.
