This is what he said:
"Hitler didn't want to exterminate the Jews at the time, he wanted to expel the Jews," Netanyahu told the group. "And Haj Amin al-Husseini went to Hitler and said,
.' 'So what should I do with them?' he asked. He said, 'Burn them.'"
From the article I quoted earlier in this thread:
But the book says that the mufti “met Hitler in person for the first time” on Nov. 28, 1941 — two months before the Final Solution was formalized and the construction of extermination camps accelerated, according to historians, but after the mass murder of Jews had begun, and roughly one million had perished.
Professor Zimmermann, the Hebrew University historian, said on Israel Radio that Mr. Netanyahu was “doing something he must not do,” and that in “the protocol” of the 1941 meeting between the mufti and Hitler, “the text that Netanyahu speaks of does not appear.”
“He moves the responsibility of the Holocaust, for the destruction of the Jews, to the mufti and the Arab world,” Professor Zimmermann said. “This is a trick intended to stain the Arabs of today because of the Arabs of the past. To pile on the Arabs of the past by easing up on the Germans of the past.”
Professor Litvak of Tel Aviv University said the speech was “the height of the distortion of history.”
“Hitler did not need Husseini to convince him.” he said on Army Radio. “Hitler spoke of the destruction of the Jews in his famous speech in 1939, in which he prophesied that if war will break out and the Jews started it, the result will be the destruction of the Jewish race. He repeated these declarations.”
1. Hitler's genocide of the Jews had been rationalized and started well before he met with the Mufti, according to historians quoted - one million had already perished by then and Hitler had spoke about the destruction of the Jewish race in 1939.
2. There is no historic record for the quote Netanyahu claims the Mufti made.
So yes, I would say Netanyahu's statements were lies. What else would you call them?