UN Secretary-General Ban Ki-moon said on Tuesday the "door may be closing, for good" on a two-state solution to the Israeli-Palestinian conflict, saying the continued growth of Jewish settlements undercuts peace.

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"The two-state solution is the only sustainable option. Yet the door may be closing, for good," Ban told the UN General Assembly.

"The continued growth of Israeli settlements in the occupied Palestinian territory seriously undermines efforts towards peace. We must break this dangerous impasse."