RAMALLAH, West Bank, March 25 (Reuters) - U.S. Secretary of State Condoleezza Rice set out a new approach on Sunday to reviving Israeli-Palestinian peacemaking, outlining "parallel" U.S. discussions with the deeply divided parties.

"Now we are in a situation in which I think a bilateral approach, in which I talk in parallel to the parties ... is the best way," Rice said at a news conference with Palestinian President Mahmoud Abbas.

She said she hoped to establish a common agenda between Israel and the Palestinians that would eventually lead to the establishment of a Palestinian state.

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