The president of the United States of America Donald Trump has unveiled the long-awaited Middle East Peace Plan, the British Broadcasting Corporation (BBC) has reported.
The blueprint which was dozens of pages long was unveiled at the White House.
Israeli Prime Minister Benjamin Netanyahu and his rival in the upcoming elections slated for 2 March Benny Gantz graced the occasion.
Mr Trump described the deal, which has been variously described as one that was extremely weighted in favour of Israel, as win-win for the two warring parties.
“Today, Israel takes a big step towards peace,” Trump said on Tuesday as quoted by the Guardian newspaper. “I was not elected to do small things or shy away from big problems," he added.
Even before the ink on the deal had dried, the president of the Palestinian Authority Mahmoud Abbas strongly rejected it, saying that it would not pass.
Among the highlights of the deal was recognition of Israel's sovereignty in the West Bank, the elevation of Jerusalem as the undivided capital of the Jewish state, and the establishment of a $50 billion fund to resuscitate to Palestinian economy subject certain conditions being met.
The deal also promises to give the Palestinians parts of East Jerusalem as their capital city.
The launching of the deal came in the wake of media reports that President Mahmoud Abbas refused to pick the US president's calls.
Mr Abbas cut contact with the Trump administration after the US government relocated its embassy from Tel Aviv to Jerusalem, which it recognised as the official capital of the state of Israel.