There is going to be one state; it’s going to be Israel, and there are not going to be any Palestinians living in it. From Caitlin Johnstone at caitlinjohnstone.com:

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There’s been a surprising number of recent Israeli government admissions that not only is a two-state solution not on the table, but that it never was.
Benjamin Netanyahu boasted at a recent press conference in Tel Aviv that he’s spent decades thwarting the formation of a Palestinian state, and that he is “proud” of doing so.
Netanyahu’s senior advisor Mark Regev told Piers Morgan that a true Palestinian state with its own military and true sovereignty was never an option for Israel, calling it “common sense” that Palestinians should at best have “less than a state”.
Israeli ambassador to the UK Tzipi Hotovely told Sky News last week that there was “absolutely no” possibility of a two-state solution to the Israel-Palestine conflict.