Palestinian President Mahmoud Abbas has praised the decision by El Salvador to recognize Palestine as a sovereign state, official WAFA news agency said. Abbas on Thursday thanked President of El Salvador Mauricio Funes for the recognition, expressing hope that it will bolster bilateral relations and improve Palestine\'s chances to acquire a full UN membership, WAFA said. About 120 countries have recognized the state of Palestine so far, but Palestinians still only have an observer status in the United Nations. Abbas announced in March that he would seek the recognition of a Palestinian state at the UN General Assembly in September with its future admission to the United Nations. Abbas has also said peace with Israel would only be possible if Israeli Prime Minister Benjamin Netanyahu accepted Palestine as a state and halted settlements on Palestinian territories. The Palestinians want to form an independent state within the 1967 borders before Israel occupied the West Bank, Gaza Strip and East Jerusalem. Israel wants Jerusalem to be its eternal and undivided capital. U.S. President Barak Obama proposed in May that Israel and the Palestinians proceed from the 1967 borders in their negotiations. The idea was supported by the entire Mideast Quartet of negotiators (Russia, the UN, EU, and U.S.). However, Israel turned down the proposal, saying it would make it vulnerable.