The prime minister has urged Israel and the Palestinian Authority not to allow terrorist groups to derail the Middle East peace process.

Tony Blair said that President Bush's "roadmap" represented the only solution to the escalating crisis.

At least 16 people were killed on Wednesday when a suicide bomber blew himself up on a bus in Central Jerusalem. Israel responded quickly with air strikes over Gaza city, which killed nine people.

Speaking in Paris after meetings with President Chirac, Tony Blair called on both sides to unite against terrorist organisations.

"The response of the entire international community has got to be unite, defeat the terrorists and refuse to let them derail the possibility for peace," he said.

"Because in the end the only solution for people in Israel, for people in Palestine, is to make sure that we are able to deliver a proper and lasting settlement for peace."

President Bush also condemned the violence, calling on nations to cut of financial assistance to terrorists and "isolate those who hate so much that they are willing to kill".