Israelis and Palestinians still support a two-state solution but do not think it can happen in the next five years, according to the results of a new opinion poll published on Tuesday.
Some 71% of Palestinians and 72% of Israelis hold that a Palestinian state will not be created in the next five years.
A smaller number, 53% of Israelis, and 52% of Palestinians do not believe that the two-state solution is even viable.
It was conducted in June and early July of this year, prior to the Temple Mount crisis.
Researchers spoke face-to-face with 1,200 Palestinians in the West Bank and Gaza and held telephone conversations with 900 Israelis, including settlers and Israeli-Arab citizens. The margin of error is +/-3% for both.
The study showed that 45% of Israeli Jews, 45% of Palestinians, and 46% of Israeli-Arabs believed that a peace agreement was the preferred next step.
This was followed by 18% of Israeli Jews, 18% of Palestinians and 17% of Israeli Arabs who thought the status quo would remain.
Some 21% of Palestinians, 13% of Israeli Arabs, and 12% of Israeli Jews held that armed conflict would occur next, while 9% of Israelis believed that their government would annex the West Bank.
But 35% of settlers and Jews living in east Jerusalem said they believed the status quo would remain in place and only 24% said the West Bank would be annexed.
Overall Israeli support for a two-state solution has dropped from 71% to 53% in the last seven years.
It showed that only 53% of Israeli and 52% of Palestinians believe that two states is the best way to resolve the conflict between them.
That is a drop from 71% of Israelis who supported the idea in 2010 and 57% of the Palestinians who stood behind it.
Data from the last year, showed that Palestinian support, which had gone down to 44% in December, its lowest point in the last seven years, had actually risen in the last half year.
Israeli support, in contrast, went down by two points consistent with its slow descent over that period.
A more detailed look at the data showed that Israeli-Arabs were the most optimistic about the two-state solution, with 81% supporting it compared to 47% of Israeli Jews.
Some 15% of those Israeli Jews said they preferred a solution that involved expelling Palestinians and another 15% said they supported an apartheid solution, the report said.
The report on the findings was published by the Tami Steinmetz Center for Peace Research at Tel Aviv University and the Palestinian Center for Policy and Survey Research in Ramallah.
Its data was compiled by Dr. Khalil Shikaki, Walid Ladadwa, Dr. Dahlia Scheindlin, and Dr. Ephraim Lavie.