Obama, Netanyahu hail strong ties

President Barack Obama and Prime Minister Benjamin Netanyahu have stressed close US-Israeli ties during a tightly choreographed White House appearance designed to quiet disputes over Iran and Middle East peace.

Speaking in the Oval Office on Monday, Obama admitted it was "no secret" the two men disagreed on how to deal with Iran's nuclear program, but both sought to end bitter public rancour and focus on areas of cooperation, including a military deal worth more than $US30 billion ($A42.55 billion).

Obama - who leaves office in early 2017 - offered the combative Israeli prime minister a lengthy handshake and hailed the "extraordinary bond" between the two countries.

The designed-for-television display of cordiality signalled a willingness on the part of both men to avoid unnecessary drama in the last 12 months of working together.

Obama said Israel's security was a "top" foreign policy priority for his White House.

Officials say the bumper security deal will include the sale of advanced US weapon systems, perhaps including hi-tech F-35 jets, precision munitions and V-22 Ospreys.

The deal will only come into effect after a current accord expires in 2017.

"We have closer military and intelligence co-operation than any two administrations in history," Obama said.

Netanyahu reciprocated by trying to bury suggestions - fuelled by his own re-election campaign comments - that he does not support the creation of a Palestinian state.

"I want to make it clear that we have not given up our hope for peace. We'll never give up our hope for peace," Netanyahu said.

"I remain committed to a vision of peace of two states for two peoples, a demilitarised Palestinian state that recognises the Jewish state."

Senior US officials admit that a peace deal will not come during Obama's final year in office, but they wanted Netanyahu to lay the groundwork for a return to the negotiating table.

The White House later described Netanyahu's comments as "encouraging," but said follow-through was necessary.

Monday's White House summit was the first meeting between Obama and Netanyahu in more than a year.

There was no joint press conference or statements after roughly two hours of meetings.

Netanyahu described the meeting as one of the best he had with the US president.