Germany on Monday called for a peace summit on Israel and Palestine with the participation of France, Jordan and Egypt.
Annalena Baerbock, the German Foreign Minister, said a four-power conference in Berlin could build on peace steps recently brokered by Jordan.
Visiting Berlin on Monday, Jordan's Foreign Minister Ayman Al Safadi said his country supported the so-called Munich format.
Germany's call came amid what Ms Baerbock called a worsening situation in the Middle East.
She said Ramadan was not playing out against a backdrop of "peace, family and joy" as would be hoped.
Palestinians staged a strike on Sunday after two people were killed by Israeli troops. Israel's parliament last month repealed a 2005 law banning four settlements in the West Bank.
"It is important to keep a political approach to solving the conflict in our sights," Ms Baerbock said at a press conference with Mr Al Safadi.
"Our countries agree that the two-state solution still offers the best basis for Israelis and Palestinians to live in peace, dignity, security and self-determination."
She said Germany wanted to link the planned talks to the negotiations in Aqaba, Jordan, that in February produced a joint communique between Israeli and Palestinian authorities.
Israel agreed to stop "discussion of any new settlement units" in occupied territories for four months.
"A meeting soon in the Munich format would be important," Ms Baerbock said, as she invited her French and Egyptian counterparts to Berlin.
The Munich group first met in 2020 and has held several meetings at the level of foreign ministers.
In talks on the sidelines of the UN General Assembly last year, they warned against "unilateral measures" that could close the door to a two-state solution.
Mr Al Safadi, who was meeting senior German officials in Berlin, said the Munich group had helped to prevent the situation deteriorating further.
"The situation is very explosive," he said, speaking through a German translator.
"We either allow the extremists to guide the way, which will definitely lead us to a catastrophe with much more conflict and violence, or those of us striving for peace work together to prevent dangerous developments."
In February, Ms Baerbock voiced concern about the Israeli government’s plans to overhaul the country’s legal system.
She said that a right-wing proposal to introduce the death penalty for Palestinians convicted in deadly attacks would be “a big mistake”. In a press conference with her Israeli counterpart Eli Cohen, Ms Baerbock echoed remarks by Mr Biden that rule of law in Israel was an important part of the the two country's alliance.
"The values that bind us together include the protection of principles of the rule of law such as judicial independence. This was always a hallmark of Israel," she told reporters alongside Mr Cohen.
Mr Cohen defended the judicial reforms proposed by Prime Minister Benjamin Netanyahu, saying they would "strengthen Israeli democracy".
Critics say the proposed reforms amount to a power grab by the prime minister. The move to overhaul the judiciary has sparked the largest protests in Israel's history, accompanied by strikes in almost every sector of the economy, including in the security forces.
