The first envoys from the Arab League are in Israel for talks on a land-for-peace plan they hope will lead to a Palestinian state.

The land-for-peace initiative offers Israel normal ties with all Arab states in return for a full withdrawal from the lands it seized in the 1967 Middle East war, creation of a Palestinian state and a "just solution" for Palestinian refugees.

Jordanian foreign minister Abdelelah al-Khatib told Israeli president Shimon Peres: "We are extending a hand of peace on behalf of the whole region to you, and we hope that we'll be able to create the momentum needed to resume fruitful, and productive negotiations."

Mr Peres responded saying: "It's time for peace."

Egyptian foreign minister Ahmed Aboul Gheit and Mr al-Khatib will also meet Israeli prime minister Ehud Olmert on the one-day visit to Jerusalem and Tel Aviv after talks with foreign minister Tzipi Livni.

"We think that time is of the essence," Mr Gheit said.

Israel has portrayed the arrival of the Egyptian and Jordanian envoys as a potential turning point in relations with the Arab League, which has long shunned the Jewish state.

Arab diplomats played down the gesture. Egypt and Jordan already have full relations with Israel, and despite US and Israeli appeals to expand the number of Arab participants in the talks, Saudi Arabia and other Arab League members with no formal ties to the Jewish state have refused to take part.

Mr Olmert has said he sees positive points in the Arab peace initiative.

But Israel opposes the return of Palestinian refugees to their former homes in what is now the Jewish state and wants to hold on to major settlement blocs in the West Bank.

The Egyptian and Jordanian envoys arrived as Tony Blair wrapped up his first talks in the region with Israeli and Palestinian leaders as the new envoy for the Quartet of Middle East mediators.

The former prime minister said he saw a "moment of opportunity" for peace.