In all honesty, no I do not believe there is a solution that both sides would support. Israel seems bent on the destruction and complete ouster of the Palestinian people. Most factions of the Palestinians would support a two state solution, but they also have their factions bent on the complete destruction and ouster of the Israeli "occupiers." There likely is not going to be a solution that solves the issue until more reasonable people are in charge of the countries. Netanyahu, and those in his party, is absolutely not and never will be the person who comes to a conclusion truly resolving the matter just as Hezbollah will never help resolve the matter. Only when the extremists are removed and the moderate peoplecan come together will a solution be reached.
While there is no solution that both the Israelis and the Palestinians would find ideal (the Israelis want all of Israel and the Palestinians want Israel to cease existing), there is (or could be) a solution that involves the creation of a Palestinian state within Israel on which both sides could agree. At the moment, depending on which side you ask, there has either been too much or not enough violence to bring both parties to that point of agreement.
This is a religious conflict that has been carrying on for centuries. The hatred between these two states is old and deep seated. I think, at this point, they look for any reason for which to fight and even kill one another. I do not know where they could possibly agree.
Until Israel replaces the bigot Netanyahu and foregoes their religious nationalism, peace will never come to the area. The only peace terms the Israeli's have ever agreed upon was when it played in their favor and left everyone else with next to nothing.
Otherwise, Israel continues to instigate further conflict, best exemplified by their aggressive expansion of Israeli settlements in recent years, their piss-poor treatment of Palestinian and Arab immigrants that can best be described as apartheid, their rejection of Jewish African refugees from war-torn states, and much more.
Due to the mistakes of the past, the Israelis and Palestineans are locked in conflict over Palestine. The religious difference doesn't help. Even if the situation were resolved, and Palestine were given to the Muslims, that would not be enough. There would still be conflict over borders. There will still be conflicts over prayer grounds and holy lands. Until the fanaticism linked with the religious fighting is removed, then no resolution is possible.
If you look at Gaza, for example, you will see that the Palestinians (referencing the government) do not want peace. One only needs to look at what happened in Gaza. When Israel abandoned Gaza and gave them tons of greenhouses to start their economy on in 2004, the people of Gaza looted and destroyed the greenhouses and elected Hamas to launch attacks on Israel. In response, Israel created a blockade with Egypt.
Palestinians have shown their support for violence while Israel has given them chances. After the disaster of giving Gaza self-governance, Israel is reluctant, and rightfully so, to give them full independence.