U.S. President Barack Obama on Sunday reaffirmed  U.S. commitement to Israel's security and also stressed the importance of negotiation in Mideast peace process.

Obama stated his stance at the American Israel Public Affairs Committee, the largest pro-Israel lobby in the United States, after his speech on Middle East and North America drew criticism, including from Israeli Prime Minister Benjamin Netanyahu.

Netanyahu criticised Obama's speech on Friday and argued that Obama's support for the pre-1967 cease-fire lines as a basis for the borders of a future Palestinian state would leave Israel with "indefensible borders."

Obama said that he wasn't surprised that his stance on the territory and security of Israel and Palestinian generated some controversy over the past few days. 

"We reaffirmed that fundamental truth that has guided our presidents and prime ministers for more than 60 years -- that even while we may at times disagree, as friends sometimes will, the bonds between the United States and Israel are unbreakable and the commitment of the United States to the security of Israel is ironclad," Obama told the audience of his meeting with Netanyahu.

"A strong and secure Israel is in the national security interest of the United States not simply because we share strategic interests, although we do both seek a region where families and children can live free from the threat of violence. It's not simply because we face common dangers, although there can be no denying that terrorism and the spread of nuclear weapons are grave threats to both our nations," Obama continued.

"America's commitment to Israel's security flows from a deeper place -- and that's the values we share. As two people who struggled to win our freedom against overwhelming odds, we understand that preserving the security for which our forefathers -- and foremothers -- fought must be the work of every generation. As two vibrant democracies, we recognize that the liberties and freedoms we cherish must be constantly nurtured. And as the nation that recognized the State of Israel moments after its independence, we have a profound commitment to its survival as a strong, secure homeland for the Jewish people," said the President.

Obama said that the context has changed in the Middle East, so too has it been changing in the international community over the last several years.

He pointed to three facts that must be faced by all:

First, the number of Palestinians living west of the Jordan River is growing rapidly and fundamentally reshaping the demographic realities of both Israel and the Palestinian Territories. This will make it harder and harder -- without a peace deal -- to maintain Israel as both a Jewish state and a democratic state.

Second, technology will make it harder for Israel to defend itself in the absence of a genuine peace.

Third, a new generation of Arabs is reshaping the region. A just and lasting peace can no longer be forged with one or two Arab leaders. Going forward, millions of Arab citizens have to see that peace is possible for that peace to be sustained.

He expressed his belief that two nations will be created through  negotiations, with permanent Palestinian borders with Israel, Jordan, and Egypt, and permanent Israeli borders with Palestine.

"The borders of Israel and Palestine should be based on the 1967 lines with mutually agreed swaps so that secure and recognized borders are established for both states," said Obama.

He further explainmed, "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. It is a well-known formula to all who have worked on this issue for a generation. It allows the parties themselves to account for the changes that have taken place over the last 44 years."

"The Palestinian people must have the right to govern themselves, and reach their potential, in a sovereign and contiguous state," He continued.

And "Israel must be able to defend itself –- by itself -– against any threat," said Obama.

He said the the ultimate goal is "two states for two people: Israel as a Jewish state and the homeland for the Jewish people  and the State of Palestine as the homeland for the Palestinian people -- each state in joined self-determination, mutual recognition, and peace."