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A Saudi Arabia prince has come out to condemn US President Donald Trump's contested Middle East peace plan, calling it a "monstrous conception" of a Palestinian state, despite the Kingdom’s increasing normalisation of ties with Israel.

"What I have seen so far of that deal is that it is trying to make of Palestine what I can call a Frankenstein creation," Saudi Arabia's Turki Al Faisal, who was once a chief of the country's intelligence service told CNBC at the Milken Institute MENA Summit in Abu Dhabi.

The US president recently unveiled the initiative for an Israeli-Palestinian deal that would cede large swaths of the West Bank to Israel and put forward a set of near-impossible conditions for Palestine to meet including no right of return – disregarding international law - before it could become a state.

Palestine rejected the US proposal, which is regarded as heavily leaning towards Israeli interests.

Trump revealed the bones of the plan at the White House alongside Israeli Prime Minister Benjamin Netanyahu.

The plan has been widely condemned by human rights groups, the United Nations and leaders who argue that it destroys the remains of a two-state solution, which is the internationally recognised solution to the situation.

It is "generally just a monstrous conception of a Palestinian state. It's rightful capital Jerusalem is stripped from it, so that takes away its heart, and its borders are undefined and that takes away its soul".

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"So, it is not going to go very far — not only in our part of the world — but the whole world has rejected it," Al Faisal said.

A US admin official denied that Faisal spoke for it and told the publication he as "no longer relevant and his comments are not aligned with the Saudi government".

Saudi Arabia's Israel pivot

Saudi Arabia welcomed the peace plan despite Palestinian opposition.

Saudi's foreign ministry said it "appreciates" Trump's efforts and called for the start of direct talks between Israel and the Palestinians.

Any disagreements with the plan should be resolved through negotiations under the auspices of the United States, it said.

Saudi King Salman meanwhile stressed "the kingdom's steadfast stance on the Palestinian issue and the rights of the Palestinian people".

Gulf rulers have come under harsh criticism for their perceived abandonment of support for Palestinian statehood and the rights of millions of Palestinians living under occupation.

The United States is seeking to engineer a historic meeting between Israeli Prime Minister Benjamin Netanyahu and Saudi Crown Prince Mohammed bin Salman at a summit in Egypt, Israel Hayom revealed Friday.

"Intensive" talks are allegedly taking place between the US, Israel, Saudi Arabia and Egypt to arrange a summit in Cairo where the two leaders could meet, senior Arab officials told the Israeli newspaper.

Saudi recently came under fire after it approved a Hebrew translation of the Quran which contains over 300 errors, Palestinian news agency Shehab revealed.

The incorrect translation was published on the website of the King Fadh Complex for the printing of the Holy Quran, a Saudi outlet responsible for producing ten million copies of the holy book every year in 74 different languages, Middle East Monitor reported.

The Complex said the errors had been presented to a "competent authority in the complex, and is awaiting the appropriate procedure by the complex management after verification and study".