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Mohammed Bin Salman, Saudi Arabia's crowned prince, said Palestinians should accept the peace conditions imposed by U.S. President Donald Trump or "shut up and stop complaining", during a meeting with heads of Jewish organizations in NY.

The remarks are said to have been made during a closed door meeting with heads of Jewish organisations in NY last month where Bin Salman is reported to have sharply criticised Palestinian President Mahmoud Abbas, according to Israeli sources who cited an Israeli foreign ministry cable sent by a diplomat from the Israeli consulate in NY, as well three sources - Israeli and American - who were briefed about the meeting.

Bin Salman's criticism of Palestinian leadership was corroborated by an Israeli foreign ministry cable sent by one of their diplomats in NY.

"It is about time the Palestinians take the proposals and agree to come to the negotiations table or shut up and stop complaining", he continued.

"People literally fell off their chairs", a source told the publication.

"He said Saudi Arabia "has much more urgent and important issues to deal with" like confronting Iran's influence in the region".

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Palestinian leadership has been boycotting the White House since December 6, when President Trump announced the US will move its embassy from Tel Aviv to Jerusalem, officially recognizing Jerusalem as Israel's capital.

Bin Salman reportedly pressed Abbas to accept the USA framework for peace after Trump's recognition of Jerusalem, and gave the Palestinian leadership the terms. Abbas said the United States was no longer an "honest broker" in peace talks. Now, the new conditions imposed by Trump, including his decision to move the USA embassy from Tel Aviv to Jerusalem, has sparked outrage among Palestinians, whose government has boycotted White House representatives since then.

Last month, Saudi Arabia opened its air space for the first time to a commercial flight to Israel, a move hailed by an Israeli official as historic following two years of efforts.

Mohammed bin Salman and Trump's son-in-law, Jared Kushner, reportedly enjoy close relations.

Israel and Saudi Arabia have no official relations and the kingdom does not recognize the Jewish state.