The only solutions is....
Abolish religion,
Is the reason they been fighting.
Israel is never going to give back the Gaza strip, and the palestinians are never going to be happy with just the gaza strip they want all of it.
This is about money and power. before the isralis came the area was a wasteland none wanted it. now they have deloveped and of course they wanted back now in the name of religion.
So there is no easy solution may be relocating one or the other to an and island off the south pacific, or one of the squares states like montana, nevada, new mexico the weather outhere is similar and they never notice the difference. The Palestian state or Israel are not bigger than New Handshire<spelling> so it can be easly set up outhere.
Worse case ... nuked then both and end of the problem