"Of course, the destruction of Israel as the only real way froward does not mean the annihilation of the Jewish people in the region," Khamenei was quoted as saying by official IRNA news agency, according to Xinhua.
Iran's proposal is that "the people who are living in the region and belong to the region would choose their own political system in a referendum", he said, adding that "this, in due course, will result in the destruction of the fabricated regime" of Israel.
The Iranian leader suggested that the "armed resistance" is the only possible response to the atrocities of Israel against Palestinians.
"We believe that the (Palestinians) in the West Bank should also be armed like in Gaza... So that the agonies of the Palestinian people could be lessened as they get powerful and their enemy becomes weaker," he said.