Recently I’ve seen calls for a 2 state solution..
Israel chose to do this and also chose to agree to the principles and the framework of the Oslo Accords that they are operating under now.
People usually get trapped by what they agree to do and what they "sign" ... doncha know ...
Once they did that kind of agreement, you're not going to find any other country in the world who will step in and offer to do that in Israel's place... doncha know...
Their mistake was engaging in the Oslo Accords in the first place. It's too late now...
Oslo Accord - Principles of the Accords
In essence, the accords called for the withdrawal of Israeli forces from parts of the Gaza Strip and West Bank, and affirmed a Palestinian right of self-government within those areas through the creation of a Palestinian Interim Self-Government Authority. Palestinian rule was to last for a five-year interim period during which "permanent status negotiations" would commence - no later than May 1996 - in order to reach a final agreement. Major issues such as Jerusalem, Palestinian refugees, Israeli settlements, and security and borders were to be decided at these permanent status negotiations (Article V). Israel was to grant interim self-government to the Palestinians in phases.
Along with the principles, the two groups signed Letters of Mutual Recognition - the Israeli government recognized the PLO as the legitimate representative of the Palestinian people, while the PLO recognized the right of the state of Israel to exist and renounced terrorism as well as other violence, and its desire for the destruction of the Israeli state.
The aim of Israeli-Palestinian negotiations was to establish a Palestinian Interim Self-Government Authority, an elected Council, for the Palestinian people in the West Bank and the Gaza Strip, for a transitional period not exceeding five years, leading to a permanent settlement based on United Nations Security Council Resolution 242, and 338, an integral part of the whole peace process.
In order that the Palestinians govern themselves according to democratic principles, free and general political elections would be held for the Council.
Jurisdiction of the Palestinian Council would cover the West Bank and Gaza Strip, except for issues that would be finalized in the permanent status negotiations. The two sides viewed the West Bank and Gaza as a single territorial unit.
The five-year transitional period would commence with Israeli withdrawal from the Gaza Strip and Jericho area. Permanent status negotiations would begin as soon as possible between Israel and the Palestinians. The negotiations would cover remaining issues, including: Jerusalem, Palestinian refugees, Israeli settlements, security arrangements, borders, relations and cooperation with other neighbors, and other issues of common interest.
There would be a transfer of authority from the Israel Defence Forces to the authorized Palestinians, concerning education and culture, health, social welfare, direct taxation, and tourism.
The Council would establish a strong police force, while Israel would continue to carry the responsibility for defending against external threats.
An Israeli-Palestinian Economic Cooperation Committee would be established in order to develop and implement in a cooperative manner the programs identified in the protocols.
A redeployment of Israeli military forces in the West Bank and the Gaza Strip would take place.
The Declaration of Principles would enter into force one month after its signing. All protocols annexed to the Declaration of Principles and the Agreed Minutes pertaining to it, were to be regarded as part of it.