UN Secretary General Ban Ki- moon said Israeli settlement activities are illegal and against the international law, stressing that they should come to an end.

In a speech at the opening session of the 22nd Arab Summit, the UN chief addressed that the significance of Jerusalem should be respected as a capital for both Israel and the future Palestinian state.

"Whatever our concerns, there is no alternative to negotiations for a two-state solution," Ban said. "Jerusalem's significance to all must be respected, and it should emerge from negotiations as the capital of two states."

He also urged the Arabs to support proximity talks between the Palestinians and the Israelis to lead to direct negotiations to end the conflict, expressing his concern of the recent Israeli escalation in the besieged Gaza Strip.

"I urge you to support efforts to start proximity talks and direct negotiations. Our common goal should be to resolve all final status issues within 24 months," he said.

Referring to last week's visit to the occupied Palestinian territories and Israel, Ban said he "saw great frustration but also strong determination - in particular the resolve of the Palestinian Authority to build positive facts on the ground despite the (Israeli) occupation."

Stressing that the closure of the Gaza Strip is "wrong and must end," Ban said his visit to the coastal enclave aimed to focus on "the unacceptable and unsustainable situation" there.

He also showed determination to follow up on a strong position taken by the international Quartet -- made up of the United States, Russia, United Nations and European Union -- in a March 19 meeting in Moscow.

"We support the intense, ongoing diplomacy of the United States to overcome the current crisis of trust," he said.

The UN chief also called on the international community to support the new government in Iraq, and thanked Qatar for its efforts to settle the years-long conflict in the Sudanese region of Darfur.

Describing the pan-Arab body as "a trusted partner of the United Nations," Ban lauded the progress made in Arab states on development, climate change and women's issues. Yet, he said more could be done.

The 22nd Arab League Summit, billed as the "Jerusalem Summit," kicked off on Saturday in the Libyan city of Sirte to discuss a package of major issues, with protecting East Jerusalem from Israeli violation high on the agenda.