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'Moment may be passing' for two-state solution - Obama

US President Barack Obama is warning that the "moment may be passing" for a two-state solution to the Israeli and Palestinian conflict.

Mr Obama said in his final White House news conference that he continues to be worried that the "status quo is unsustainable" in Israel.

He said his administration has tried to preserve the possibility of a two-state solution because he does not "see an alternative to it".

The United States decision to allow the United Nations' most powerful body to condemn Israeli settlements in the West Bank and east Jerusalem has been condemned by President-elect Donald Trump and Israeli Prime Minster Benjamin Netanyahu.

Mr Obama said the president-elect "will have his own policy" and that is his administration's prerogative. The president calls the situation in Israel "a volatile environment".

AP

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