Israeli Prime Minister Benjamin Netanyahu has said he agreed to delay annexation in the occupied West Bank as part of a normalisation deal with the United Arab Emirates (UAE), but the plans remain "on the table".

Israel and the UAE agreed on Thursday to normalise diplomatic ties in a landmark deal - brokered by the United States - according to which Tel Aviv had pledged to halt annexation of Palestinian lands.

A joint statement issued by the three nations said "Israel will suspend declaring sovereignty" over the occupied West Bank areas.

However, in a television address after US President Donald Trump's announcement of the deal, Netanyahu said he had only agreed to "delay" the annexation, and that he would "never give up our rights to our land".

"There is no change to my plan to extend sovereignty, our sovereignty in Judea and Samaria, in full coordination with the United States," Netanyahu said in Jerusalem, using the biblical name for the occupied West Bank.

Meanwhile, a tweet by the UAE's leader indicated the Gulf state viewed Israel's annexation plans as being off the table.

"An agreement was reached to stop further Israeli annexation of Palestinian territories," Sheikh Mohammed bin Zayed Al Nahyan posted on Twitter.

UAE Minister of State for Foreign Affairs Anwar Gargash told a media briefing that "most countries will see this as a bold step to secure a two-state solution, allowing time for negotiations".