Germany, France and Britain want negotiations based on June '67 boundaries while Israel argues against that suggestion because it "predetermines the outcome."
Apparently, at the moment only the Obama administration among members of the quartet (UN, EU and Russia) has not formally committed to the June '67 lines as a starting point for negotiations.
"Israel, which has settled hundreds of thousands of Jews inside the West Bank and East Jerusalem, acknowledges that it will have to withdraw from much of the land it now occupies there.
"But it hopes to hold onto the largest settlement blocs and much of East Jerusalem as well as the border to the east with Jordan and does not want to enter into talks with the other sides position as the starting point."
http://www.nytimes.com/2011/04/03/world/middleeast/03mideast.html?_r=1