"If implemented, the achievement will have a far reaching, dramatic and positive impact on the overall situation in the Mideast region", he said.
Egypt's foreign minister is set to arrive in Israel Sunday for the first such visit in almost a decade, reflecting the warming ties between the former adversaries.
Promising Egyptian support for any negotiations, Mr. Shoukry outlined his country's commitment to a "just, comprehensive and sustainable resolution for the Palestinian-Israeli conflict", acknowledging its significance in securing broader Middle Eastern peace and security.
"We're familiar with the American position; we don't accept it. Building in Jerusalem and Maale Adumim is not, with all due respect, distancing peace", Netanyahu said on Wednesday at a press conference in Rwanda, referring to an illegal settlement near Jerusalem, Al-Jazeera reported.
Mr Netanyahu and Mr Shoukry were to meet again later for talks over dinner at the premier's Jerusalem residence.
Israel's Prime Minister Benjamin Netanyahu has weathered several scandals during this term, including a police investigation and state audits into his family's spending. The Palestinians say Israeli settlement expansion denies them a viable state they seek in the occupied West Bank, the Gaza Strip and a capital in Arab East Jerusalem.
Highlighting Israeli raids into the Hebron towns of Dura and Sair, al-Ayyam said two Palestinians were shot and injured by Israeli troops during the clashes.
"Today I call again on the Palestinians to follow the example of Egypt and Jordan and join us for direct negotiations".
Egypt's President Abdel Fattah al-Sisi (C) talks during the closing session of an African summit meeting in the Egyptian resort of Sharm el-Sheikh on June 10, 2015.
After president Hosni Mubarak's ouster in the 2011 revolution, protesters stormed Israel's embassy in September that year amid clashes with police.
Morsi was ousted in July 2013 by then army chief Sisi, who was elected Egypt's president in 2014. He hopes stronger alliances with African and Arab leaders can help dampen the antagonism Israel frequently faces at the United Nations.
The Egyptian Foreign Ministry said the visit is aimed at reviving the Israeli-Palestinian peace process.
But some analysts have questioned whether Netanyahu's comments were a bid to fend off worldwide critics over his appointment of hardline Defence Minister Avigdor Lieberman and his strong opposition to the French peace initiative.
Netanyahu said his staff will create a team to follow up on the Africa trip.
"They all still have business with the Arab states and Iran, so it's a matter of calculating costs and benefits", Navon said.
Solving the Israeli-Palestinian conflict will make the peace treaty between Egypt and Israel "warmer", Al-Sisi said in May, adding that Egypt is ready to mediate to end the conflict.
Violence has escalated recently, and 35 Israelis have been killed in a wave of knife, gun and car-ramming attacks since October.