JERUSALEM (AFP) - Jerusalem must be the future capital of both the state of Israel and the state of Palestine, French President Francois Hollande told the Israeli Parliament in a special address on Monday.

"France's position is known: a negotiated settlement, with the State of Israel and (the State) of Palestine both having Jerusalem as capital, coexisting in peace and security," he said.

He also said sanctions on Iran will remain in place as long as France is not convinced that Teheran has "definitively renounced" its military nuclear ambitions.

"I confirm here that we will maintain the sanctions as long as we are not certain that Iran has definitively renounced its military (nuclear) programme," he said. "France will not let Iran arm itself with nuclear weapons."

He said France is using "all its might" to battle anti-Semitism. "France is fighting with all its might against anti-Semitism in all its forms," he said.

"I confirm in this house the French Republic's commitment to watch over at all times the security and safety of the Jews of France."