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Last Updated: Thursday, 22 January, 2004, 18:49 GMT
Iranian leader talks to Israeli
Iranian President Mohammad Khatami
Khatami's response came as a surprise
Iran's president has told an Israeli reporter he favours a peaceful solution to the Israeli-Palestinian conflict.

Mohammad Khatami was responding to a question in what is believed to be the first time the Iranian leader has publicly spoken to an Israeli.

Mr Khatami took the question at a news conference at the World Economic Forum in Davos, Switzerland.

Iran has frequently called for the Jewish state's destruction and the two countries are bitter foes.

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