Palestinian leaders say they will ask the United Nations to endorse an independent state without Israel's consent because of their frustration at the stalled peace process.

Palestinian leaders say they want formal recognition of an independent state based on the pre-1967 borders with Israel, which would give them Gaza, the West Bank, and east Jerusalem as their capital.

But the move appears to be largely symbolic, as a similar declaration was made in 1988 and won the support of dozens of countries but was never implemented on the ground.

Chief Palestinian negotiator Saeb Erekat has expressed frustration over the peace process with Israel, which has been stalled for a year.

"We want them to recognise the two-state solution, and instead of Palestine and instead of Israel, on the '67 border," he said.

"Because what the Israelis are doing, they're trying to undermine and pre-judge and pre-empt demands that are supposed to be used for the creation of the Palestinian state."

Israel has attacked the move, saying it will achieve nothing, and has warned it might annex parts of the West Bank that house Jewish settlements if the Palestinians act unilaterally.

The United States would also likely veto any such motion at the UN Security Council.

Speaking through an interpreter, Israeli Prime Minister Benjamin Netanyahu warned the Palestinians against going to the Security Council.

"There's no substitute to negotiations between Israel and the Palestinian Authority, and any unilateral path will only unravel the framework of agreements between us, and will only bring unilateral steps from Israel's side," he said.