"The importance of moving forward in a significant and bold way in securing a Palestinian homeland that can live side by side with a secure and prosperous Israeli state," said Obama in his bilateral meeting in White House.
Arab leaders expressed their disappointments that Obama has not made more progress in pressuring Israel to give ground in US-mediated peace talks. Obama will meet with Israeli prime minister Benjamin Netanyahu at the White House on Jul 6.
King Abdullah and Obama "expressed their hope that proximity talks between Israelis and Palestinians will lead to the resumption of direct talks with the aim of two states living side-by-side in peace," said the White House.
"We appreciate all that you personally have done to further broaden and deepen and strengthen this relationship," said King Abdullah to Obama.
White House spokesperson Robert Gibbs said that the Saudi king Abdullah ensured Obama of their support for the Arab Middle East peace proposal.
King Abdullah initiated the 2002 plan, which offers Israel recognition in exchange for returning the occupied territories and the establishment of a Palestinian state.
Analysts said that the Saudis want Obama to lean on Netanyahu over stalled peace talks with the Palestinians and on freezing Jewish settlements on occupied Arab land.
Obama will meet with Israeli Prime Minister Benjamin Netanyahu at the White House on Jul 6.