JERUSALEM, Jan. 13 (Xinhua) -- Visiting U.S. Secretary of State Condoleezza Rice and Israeli Foreign Minister Tzipi Livni vowed Saturday to continue their efforts in realizing two-state solution to the Israeli-Palestinian conflict.

    Rice and Livni made the remarks in a joint press conference held in Jerusalem on Saturday evening before their meeting in private, local newspaper Yedioth Ahronoth reported.

    Livni told the reporters that "we will continue with our efforts. The objective is clear, two states living side-by-side in peace. The elections in the Palestinian (National) Authority (PNA)have made matters more complicated."

    Moderate Palestinians must be given a political horizon and Israel's security must also be upheld, she said, stating that the goal of any political process must be the establishment of two states for two peoples.

    Rice, on her part, agreed with that statement, saying that she believes that most Palestinians want to live in a place where their children can live in peace and security.

    She noted that among other things, she and Livni would discuss matters pertaining to Iran and Iraq, as well as how to advance the Road Map plan on Middle East peace.

    Meanwhile, the daily Ha'aretz quoted some Israeli officials as revealing that Livni and Rice had discussed the possibility of creating a Palestinian state with temporary borders following the line of the security fence which Israel is building in and around the West Bank.

    Earlier in the day, Rice met with Israeli Defense Minister Amir Peretz and Strategic Affairs Minister Avigodr Lieberman.

    According to Israeli media, Peretz asked Rice to keep the issue of the kidnapped Israeli soldiers by Palestinian and Lebanese Hezbollah militants on the international agenda.

    They also discussed ways to stop extremist forces such as Hamas, Islamic Jihad and Hezbollah from gaining strength.

    Rice will meet on Sunday with PNA Chairman Mahmoud Abbas and with Israeli Prime Minister Ehud Olmert on Monday.