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Last Updated: 6 hours 16 minutes agoThe United States President Barack Obama has refused to back away from his Middle East peacemaking vision as he addressed American supporters of Israel in Washington.

Mr Obama has angered Israel over his stance that peace talks should start on the basis of Israel's 1967 borders, but says he expects Israel and the Palestinians to negotiate land swaps that would allow Israel to keep some Jewish settlements.

His suggestion of land swaps came in a speech to Washington's most powerful pro-Israel lobbying group, the American Israel Public Affairs Committee - three days after he endorsed a long-standing Palestinian demand on the borders of their future state that could require big Israeli concessions of occupied land.

At one point Mr Obama faced a light smattering of boos, which were quickly drowned out by loud applause, when he touched upon some of the most controversial issues now dividing the US and raising doubts whether his peace vision will get off the ground.

The US leader did however emphasise Washington's continued support for the Israeli government.

"Even while we may at times disagree, as friends sometimes will, the bonds between the US and Israel are unbreakable, and the commitment of the US to the security of Israel is ironclad," he said to loud applause.

The speech followed a tense encounter at the White House on Friday with Israeli Prime Minister Benjamin Netanyahu, who has pledged that Israel will never pull back to its old borders.

Correspondents say Mr Obama's speech, and the response to it, suggest that his approach to peace in the Middle East may cost him support among Jewish and pro-Israel voters and donors as he runs for re-election in 2012.

New border

At issue is Mr Obama's embrace of a long-sought goal by the Palestinians: that the state they seek in the occupied West Bank and Gaza should largely be drawn along lines that existed before the 1967 war in which Israel captured those territories and East Jerusalem.

The proposal would call for land swaps to compensate for Israel keeping some settlements in the West Bank.

"By definition, it means that the parties themselves - Israelis and Palestinians - will negotiate a border that is different than the one that existed on June 4, 1967. That's what mutually-agreed-upon swaps means," Mr Obama said.

"It allows the parties themselves to account for the changes that have taken place over the last 44 years.

"It allows the parties themselves to take account of those changes, including the new demographic realities on the ground and the needs of both sides."

Mr Obama's reassurances of Washington's continued support have been welcomed by Israeli culture minister Limor Livnat, of Mr Netanyahu's right-wing Likud party.

He welcomed Mr Obama's clarification of his position as "important words".