Iran's President 'would support two-state solution' for Israel

Iran's President Mahmoud Ahmadinejad has recognised Israel's right to exist for the first time, saying it would be "fine with us" if the Palestinians reached a two-state solution.

Asked if he would support an agreement between the Palestinians and Tehran's arch enemy, he said: "Whatever decision they take is fine with us. We are not going to determine anything. Whatever decision they take, we will support that.

"We think that is the right of the Palestinian people, however we fully expect other states to do so as well."