[This via Ted Belman's Israpundit. His shaded comments at the beginning of this JPost story are all you need to know why many Israelis (some high in his own party) have come to trust Netanyahu about as far as they can throw him. df]
T. Belman. Don’t focus on what is denied, focus on what is not denied, namely that such a deal has been under negotiations as set out by Indyk. Nor did Netanyahu deny that such negotiations weren't currently in discussions. Nor did he order COGAT to stop working on such a plan which he no doubt originally authorized. All he said, without an agreement I won’t give then one meter/dunam.
Channel 2 had reported that Netanyahu had planned as well to hand some portion of that territory over to the Palestinian Authority.