The European Unioninfo-icon has joined the outgoing USinfo-icon administration in defending the two-state solution as the best way to achieve lasting peace between Israelis and Palestinians.

A spokeswoman for the 28-nation bloc reiterated the EU's support for the two-state solution on Thursday, the day after US Secretary of State John Kerry tore into Israelinfo-icon for settlement-building.

EU spokeswoman Maja Kocijancic says Kerry's remarks "all send one key message: The international community does not give up on peace in the Middle Eastinfo-icon."

Kocijancic added: "The only way to end the conflictinfo-icon is through a two-state solution negotiated between the parties."

In a farewell speech, Kerry defended President Barack Obama's move last week to allow the UN Security Council to declare Israeli settlements illegal, a move that caused an extraordinary diplomatic spat.