Current negotiations are a little different to that, plans involving land swaps. From what I've read it seems talks are about 6% of West Bank being given to Israel, with a far larger amount being donated by Jordan to Palestine with Jordan agreeing to Disarm Palestinians and take on responsibility for defence whilst accepting Israel will carry out strikes in retaliation for terrorism.
Gaza is a problem because the population doubles every 20 years which is unsustainable, Gaza would need to be expanded by 2 - 3 times into Egypt, for which Israel would compensate Egypt by giving them a strip of land extending along the full Israel/Egypt border.
That hasn't aged well.
