CAIRO -- Saudi Foreign Minister Prince Saud al-Faisal said here Tuesday the entire Arab world is prepared to offer Israel peace in exchange for its total withdrawal from occupied Arab territories, AFP reported.

He was speaking to journalists after briefing Egyptian President Hosni Mubarak on his talks last week with U.S. President George W. Bush and Secretary of State Colin Powell.

Bush, who also saw Mubarak earlier this month, was expected to announce later Tuesday new plans for reviving the Middle East peace process.

"The Arabs affirm that we are ready to sign a peace treaty with Israel the same day that it totally withdraws from occupied Arab territories," Faisal said.