Palestinian chief negotiator Saeb Erakat accused Mr Bush of torpedoing the Mideast peace road map drawn up by the US, the United Nations, European Union and Russia.
Palestinian leader Yasser Arafat was more measured with his criticism, saying that any delay to statehood was “unrealistic”.
Mr Bush’s comments were made in an interview published yesterday by the Egyptian newspaper Al-Ahram.
Israel welcomed the comments but went further, ruling out any possibility of Palestinian statehood next year.