Saudi Arabia has denounced Israel for its "racist extermination" war on Palestinians in Gaza, and demanded international action to prevent a humanitarian disaster in the territory.

In a statement after its weekly meeting under the chairmanship of King Abdullah, the cabinet said the 17-day-old offensive "was stripping Israeli leaders of their humanity."

Leaders of the Jewish state were "placing their policies among those of racist extermination," it said in the statement released by the official SPA news agency.

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The Saudi Government appealed to the international community to respond "decisively to stop a catastrophe" in Gaza, and to compel Israel to abide by a UN Security Council resolution calling for a ceasefire.

It said it was "optimistic" about US president-elect Barack Obama's pledge to put in place a team that can commit "immediately" to the Middle East peace process, after his inauguration on January 20.

Riyadh expected the incoming US administration to show "more seriousness, objectivity and independence in dealing with Palestinian affairs," the statement added.

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