Barack Obama will meet with Israeli Prime Minister Benjamin Netanyahu to discuss a two-state solution to the Israeli-Palestine conflict.

They will meet in New York on the margins of the United Nations General Assembly on Wednesday to discuss a recently agreed deal on US military aid, the White House said.

"The meeting also will be an opportunity to discuss the need for genuine advancement of a two-state solution to the Israeli-Palestinian conflict in the face of deeply troubling trends on the ground," White House spokesman Josh Earnest said.