Israeli Prime Minister Benjamin Netanyahu on Sunday reiterated good relations with the United States, and rejected recent media report describing the U.S. President Barack Obama's administration as "hostile."

"I find these remarks to be unacceptable. Relations between Israel and the U.S. are those between allies and friends and reflect longstanding tradition," Netanyahu said in his speech at a weekly cabinet meeting.

Netanyahu was denying an Israeli newspaper report, which quoted a source near the prime minister as saying "we are facing a hostile (U.S.) administration like never before."

Meanwhile, he admitted the two countries have differences, "there were areas in which there was full agreement, as well as those where there was disagreement."

"We represent the State of Israel's longstanding interests. We will try to bring about a situation in which we will be able to advance the peace process and preserve these interests," added Netanyahu.

This is the first time the Israeli premier gives a public comment on his latest meeting with Obama.

During Netanyahu's trip to the United States last week, both leaders held talks at the White House in an effort to ease tensions over Israel's building plan in East Jerusalem, which is long in the forefront of the intractable Israeli-Palestinian feud.

While promised a number of goodwill gestures to promote peace process, such as releasing Palestinian prisoners and removing roadblocks in the West Bank, Netanyahu continued saying no to the United States' demand for a complete construction freeze in the controversial section of Jerusalem.

The relations between the two traditional allies became strained after Israeli government gave greenlight to a 1,600 housing program in East Jerusalem during U.S. Vice President Joe Biden's Mideast tour.

The building scheme threaten to derail the newly-resumed Israeli-Palestinian peace talks and draw severe criticism from the Obama administration, whose peace efforts were embarrassed by Israel's move.