AMMAN, July 24 (Xinhua) -- Spokesman of the British government John Wilkes urged Israel to change its policy on settlement building in Palestinian territories, official news agency Petra reported Thursday.

    The major obstacle facing the Mideast peace process was the construction of Israeli settlements, Wilkes said at a press conference at the residency of the British ambassador to Amman.

    Any peaceful solution to the Palestinian-Israeli conflict should be based on a two-state solution with Jerusalem being the capital of a Palestinian statehood and Israel, said Wilkes.

    Britain will do its utmost together with the international community to end this long-running conflict, the spokesman said, noting the solution is in the hands of Palestinians and Israelis.

    Israel promised not to establish new settlements in the West Bank at a U.S.-hosted Middle East conference in November where Israeli and Palestinian leaders resumed the long-stalled peace talks and pledged to reach a comprehensive peace deal within 2008.

    Israel, however, has given no signal to halt construction in east Jerusalem, which Israel seized in 1967 and later annexed, in defiance of the official stance of the United States and the Palestinians' demand that east Jerusalem be the capital of their future state.

    A 2003 internationally drafted road-map for peace called for the peaceful two-state solution and a halt to Israeli settlement activity in the Palestinian territories. However, it has made little progress since then.