The Guardian, Telegraph, Independent and Times all report on re-elected Prime Minister Benjamin Netanyahu’s apparent backtracking on his rejection of a two-state solution, quoting his comments on American television station MSNBC News that: “I don’t want a one-state solution. I want a sustainable, peaceful two-state solution. But for that, circumstances have to change.”

The Telegraph and the Times report on hints by US Administration officials of serious consequences if the new Israeli government does implement Netanyahu’s apparent rejection of a two state solution. The Telegraph has a front page report on the “unprecedented threat” by the Obama administration of a withdrawal of American support for Israel at the UN, while the Times quotes a White House official saying the President did not want to “waste his time” engaging with Netanyahu and would leave relations with Israel to Secretary of State John Kerry.

The Metro cites defeated Zionist Union leader Isaac Herzog claiming that Netanyahu “touched on racism” in his pre-election warning to right-wing voters that Israeli Arabs were being bussed to the polls “in droves”. The Telegraph online reports on Netanyahu’s explanation for the controversial comments in which he placed the comments in the context of “a foreign-funded effort” to mobilise votes against his Likud party and pledged to push for “real integration of Arab citizens” into the economy . The Guardian online focuses on apparent displeasure in Washington at Netanyahu’s comments in the days leading up to election in which he appeared to rule out the establishment of a Palestinian if re-elected, as well as criticism by the White House of the remarks made by the Prime Minister about Israeli Arab voters.

The Guardian online reports on British Deputy Prime Minister Nick Clegg’s strong criticism of Netanyahu’s seeming rejection of a Palestinian state on his weekly phone-in show on the LBC radio station.

Both the Telegraph and the Independent carry reports of the 459 Syrians who have crossed the border into Israel to be treated at Ziv Hospital in the northern town of Safed. The hospital’s chief of paediatrics is quoted in the Telegraph saying: “As far as we’re concerned they’re just human beings who need treatment.”

Noted Israeli Arab writer Sayed Kashua, writes in the Guardian online of his dashed hopes following Netanyahu’s ultimately surprising victory, condemning both the prime minister’s “intimidation, factionalism, hatred and incitement” and the Israeli public for electing him.

Novelist Frederick Forsyth writes approvingly of Israeli democracy in the Express and compares the lives of Arab citizens in Israel, with “better homes and jobs, better hospitals … better schools”  than those of Palestinians living under the Palestinian Authority.

The Telegraph‘s and the Guardian‘s online editions run pieces looking ahead to the meeting this weekend in Lausanne of negotiators for a deal on Iran’s nuclear program. The Guardian‘s Julian Borger and Chris Fenn predict that the US Congress would insist on a vote on the deal were one to be agreed by the parties, while failure to reach a deal would cause a ramping-up in sanctions by the US and Israel would have to make decision on whether to resort to military action.

In the Israeli media, there is much speculation about the coalition negotiations with Israel Hayom predicting a government will be formed in two to three weeks. All the papers report that Netanyahu will move to cancel the law passed in the last Knesset limiting the number of cabinet ministers to 18 in a bid to give positions to both Likud loyalists and leading figures in the parties of his coalition partners.

Haaretz reports that US Speaker of the House of Representatives John Boehner will soon be visiting Israel. Boehner, a leading Republican official, was responsible for inviting Netanyahu to speak to Congress on Iran, drawing the ire of President Obama and many Democrats. Haaretz also carries coverage of Netanyahu’s comments on US television reversing his rejection of a two-state solution, while Haaretz and Ynet both report on resident Obama’s first telephone conversation with Netanyahu since the election, in which the President reiterated America’s commitment to helping Israelis and Palestinians to reach a peace agreement.

Israel Hayom reports on Herzog’s pledge to fight the government from the opposition and quotes him declaring: “We will face today’s reality and continue as a large, strong camp that wants a Jewish, democratic, secure and just state.”

In other news, Ynet runs an Associated Press report on the UN’s warnings of unauthorised weapons in a UN buffer zone in Lebanon and the threat of escalating violence between Israel and Hezbollah.