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"We, the Palestinians, need to respond by declaring our own state with 1967 borders immediately with Jerusalem as its capital and ask the world community at once," Barghouthi said.
While some analysts argue that Netanyahu does not really have a plan or goal with the peace talks and the offer was only made to stall the negotiation, Barghouthi seems disagree.
"He has a policy and it's very clear, he does not want a Palestinian state," he said, adding that "what he wants is clusters of Palestines and ghettos. This is his way of killing the peace process because he believes only in Israeli unilateral actions."
Asked why the offer is so controversial to the Palestinians, Barghouthi gave two reasons.
"Recognizing Israel as a Jewish state means ignoring the rights of 1.5 million Palestinians who live in Israel," he explained referring to Palestinians who did not leave Israel when the state was created in 1948.
"It also would mean eliminating the historical rights of the Palestinians including the rights of the Palestinian refugees," he added.
Naji Shurab, professor of political science at al-Azhar University in Gaza, however did not outright dismiss the possibility that the Palestinian National Authority one day would accept Netanyahu's offer, only that the time is not now.
"Abu Mazen (Abbas) might accept as part of the final peace agreement, but for now I think they will keep his demand that the freeze must continue if there will be any more talks," Shurab told Xinhua.