Palestinians would never take up such an offer even if it was made. They know, deep in their hearts, that they have more freedom and more prosperity under Israeli sovereignty than they would under any Arab regime.
From the early 20th century to 1948, most of the land acquired by the Jewish people was purchased from absentee Arab landlords all over the Middle East. When they decided to take possession, the Palestinian tenants had to leave. However they were treated as second and third class citizens by their Arab brethren almost everywhere they went, including their designated homeland in Jordan, so they wound going back to refugee camps in Israel. Even that was better than living as near-slaves among their cousins.
These days you don’t hear them clamoring to move out of Gaza, etc.