"It's not a matter of unilateral concessions. It's a matter of both parties coming together and recognizing that their futures will be inextricably linked and that Israel will be safer, more secure, more prosperous, if the issue can be resolved," he said.
"And, obviously, Israel can't resolve it by itself. But it can't stop trying."
Obama also is likely to face questions during his visit about the possible release of convicted spy Jonathan Pollard, a U.S. citizen sentenced to life in prison for giving American military secrets to Israel.
Pollard was a civilian intelligence analyst for the U.S. Navy when he was arrested in 1985 on charges that he provided secrets to the Israelis. He pleaded guilty to one count of espionage.
The Israeli government, which has acknowledged that Pollard was its spy, granted him citizenship and has been lobbying for his release.
But while he is considered a patriot by the Israeli government, Pollard has been turned down for clemency by Presidents Bill Clinton and George W. Bush.
"I have no plans of releasing Jonathan Pollard immediately," Obama said during the interview.
The president also did not commit to reviewing the case other than to ensure that Pollard, as a U.S. citizen, is "accorded the same kind of review" given to all Americans.