Egyptian President Hosni Mubarak said on Monday that Israeli Prime Minister Benjamin Netanyahu's speech, which called for recognition of Israel as a Jewish state, will complicate situation and throttle peace hopes in the region.

 "The proposal to recognize Israel as a Jewish state complicates the situation further," the official Nile TV quoted Mubarak as saying.

 The president made the remarks while attending a military ceremony with the army's special forces.

 "The Middle East will be a scene of unrest if there is no comprehensive peace," he said, adding "the solution to the major problems of the Arab and Islamic worlds is through Jerusalem."

 "Netanyahu's call for changing the Arab (Peace) Initiative to drop the refugees' right to return will not receive support from Egypt or elsewhere," he said.

 "I have told the Israeli prime minister and US President ( Barack) Obama that the negotiations should start from where it ended without any delay," he added.

 Meanwhile, Egypt's foreign ministry said in a statement that Israeli prime minister's view which is "not complete" needs to be "developed."

 "Egypt hopes to hear different Israeli proposal which is built on the commitment to the two-state solution," it said.

 On Sunday evening, Netanyahu declared in a keynote speech that he was prepared to see the establishment of a Palestinian state, so long as the international community could guarantee it does not have any military capabilities.