Mahmoud Ahmadinejad, in a speech that was carried live on state television, said Wednesday, "They have invented a myth that Jews were massacred and place this above God, religions and the prophets," Australia's Special Broadcasting System reported.
Speaking in the southeastern province of Sistan-Baluchestan, Ahmadinejad said: "Our proposal is this: Give a piece of your land in Europe, the United States, Canada or Alaska so they can create their own state. ... Be certain that if you do that, the Iranian people will no longer protest against you and will support your decision."
Wednesday's remarks were the latest in a series of anti-Israel statements from the 49-year-old leader, who took office in August.
In October he called for Israel to be "wiped off the map," and last week he described Israel as a "tumor" that should be moved to Germany or Austria.
The government of Israel quickly condemned Ahmadinejad's comments. Israel's YnetNews reported that Raanan Gissin, a spokesman for Prime Minister Ariel Sharon, said, "Just to remind Mr. Ahmadinejad, we've been here long before his ancestors."