Israeli Defense Minister Benny Gantz said Sunday that there is a "deep ideological dispute" with Palestinian President Mahmoud Abbas.

Speaking at a counterterrorism conference in the coastal city of Herzliya, Gantz said despite having "a deep ideological dispute with the Palestinian Authority, both sides are interested in peace and stability," according to Yedioth Ahronoth newspaper.

Gantz defended his meeting with Abbas last week in the West Bank city of Ramallah, saying the Palestinian leader backs a political settlement with Israel and opposes "terrorism."

"Coordination with the Palestinian Authority and strengthening the Palestinian economy is dozens of times better than strengthening Iranian proxies on our borders," Gantz added, without giving further clarifications.

Since April 2014, negotiations between the Palestinians and Israel have stalled due to Tel Aviv's refusal to stop settlement building, releasing Palestinian detainees and evading the two-state solution.