AFP - Opposition chief Tzipi Livni reiterated her support Friday for a Palestinian state and the resumption of peace talks as she made a rare foray by an Israeli leader into the Arab world.

However, speaking at a forum in the coastal city of Tangiers devoted to conflict resolution, Livni said she would not countenance the establishment of a "terrorist" state as she also took aim at the Islamist movement Hamas.

"I believe we can put an end to the conflict based on a two-state solution", she said in comments translated into French, adding it was vital that dialogue between the two sides is resumed.

Livni said that the Israeli-Palestinian conflict was not about religion, regardless of the efforts of the Islamists of Hamas to portray it as such, but rather a nationalist struggle.

Hamas, which controls the Gaza Strip, has been behind scores of anti-Israeli suicide attacks and refuses to recognise Israel's right to exist.

Livni was formerly a member of Prime Minister Benjamin Netanyahu's Likud party which has traditionally been opposed to the creation of a Palestinian state being created alongside Israel.

Before her speech, Livni shook hands with Rafiq al-Hussaini, Palestinian president Mahmud Abbas's chief of staff who was also taking part in the forum.

Hussaini said the Palestinians "have no desire" for a conflict with Israel but said that peace negotiations could not restart "until Israel stops the settlements" on Palestinian territory, including annexed Arab East Jerusalem.

Livni did not meet any member of the Moroccan government during her visit to Tangiers and was due to return to Israel on Friday, according to organisers.

Morocco is one of the rare Arab countries to receive Israeli officials despite the absence of formal diplomatic relations. Egypt, Jordan and Mauritania are the only Arab states to have forged full diplomatic ties with the Jewish state.