In return for a peace treaty with Syria, Damascus would have regained control of the entire area it lost to Israel during the 1967 war, The Jerusalem Post reported Friday, citing a story by Tel Aviv newspaper Yedioth Ahronoth.
Documents written by U.S. Middle East envoy Fred Hoff, who reportedly moderated the talks, were cited as sources for the claim.
The prime minister's office said such an initiative was not accepted "at any point."
"This initiative is old and irrelevant, and the fact it is being released now derives from political interests," the office said in a statement.
The prime minister's office said the initiative was one of many offered to Israel in recent years.
The peace treaty also would have included the establishment of embassies in each country.