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This futuristic study is an attempt to forecast the outcome of one of the final status issues in the Palestinian - Israeli conflict, that is the refugees issue. The study offered many initiatives at several levels including the Palestinian, Arab, Israeli, and international to deal with. The study discussed the schools of thought regarding this issue in order to build an Arab strategy based on the Realist school of thinking. The study analyzed the major initiatives offered by leading academics and practitioners. It did also offer a hypothetical solution that might see the light taking into consideration the international environment as well as the Arab negotiation position namely the Palestinian one. This hypothetical as well as the Arab negotiation position namely the Palestinian one. This hypothetical initiative include the following: The possibility of accepting the right of the Palestinian refugees with out implementing it on the ground namely the return of return, the possibility of return of some refugees, only a small number, the concentration on financial compensation, the pressure of the hosting countries of the refugees to settle them and finally an Israeli apology for the suffering of the Palestinian refugees. The study also offered some insights that might help decision makers to work and deal with this hypothetical initiative.

Keywords: The Palestinian refuges issue, Final status negotiations, The right of return, Financial compensation, The peace process, Initiatives to deal with the refugees problem.