Israeli leaders are giving serious consideration to a dormant Arab peace initiative offering a comprehensive peace between Israel and the Arab world, Defense Minister Ehud Barak said Sunday. Barak said that with individual negotiations with Syria and the Palestinians making little headway, it may be time to pursue an overall peace deal for the region. He said he has discussed the Arab plan with Prime Minister-designate Tzipi Livni, who is in the process of forming a new Israeli government, and that Israel is considering a response. Saudi Arabia had first proposed the peace initiative in 2002, offering pan-Arab recognition of Israel in exchange for Israel's withdrawal from Arab lands captured in 1967 – the West Bank, Gaza Strip, east Jerusalem and the Golan Heights. The 22-member Arab League endorsed the plan last year as the Arab peace initiative. Israel has said the plan is a good basis for discussion, but expressed some reservations. “Therefore, there is definitely room to introduce a comprehensive Israeli plan to counter the (Arab) plan that would be the basis for a discussion on overall regional peace,” Barak told Israel's Army Radio. While Israel's outgoing prime minister, Ehud Olmert, has welcomed the Arab initiative, he and other leaders want to keep small parts of the territories captured in 1967. Israel also objects to a large-scale return of Palestinian refugees to lands inside Israel, saying a massive influx of Palestinians would destroy the country's Jewish character. Israel's ceremonial president, Shimon Peres, proposed merging Israel's various peace talks into one track last month at the United Nations. Peres has since been pushing the idea in meeting with Israeli, Arab and Western officials, his office said. In Sunday's interview, Barak said he was in full agreement with Peres, and had discussed the peace plan with Livni as well. “I had the impression that there is indeed an openness to explore any path, including this one,” he said of his talks with Livni. Livni is currently working on forming a new coalition government, and Barak, who leads the Labor Party, is expected to play a senior role in the next administration. Olmert is leaving office to battle corruption charges.