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Mr. Netanyahu also scored 18 points higher than the woman he narrowly defeated in February elections-former Foreign Minister Tzipi Livni, a strong advocate of Palestinian statehood.
Under U.S. pressure, Mr. Netanyahu reluctantly endorsed the concept of a Palestinian state last month, but with tough conditions that were flatly rejected by the Palestinians.
David Stern, a man on the street here in Jerusalem, supports the prime minister's cautious approach.
"I don't actually expect that there will be a Palestinian state, not because of Israel's recalcitrance but because Palestinians don't seem to really want it," he said. "They want a state instead of Israel, not a state alongside Israel."
Mr. Netanyahu's support for settlement expansion has strained Israel's all-important relations with Washington. But Israeli analyst Mitchell Barak says the prime minister has managed to walk a tightrope between U.S. pressure and the demands of his nationalist coalition partners.
Barak says Mr. Netanyahu has made concessions: Israel says it will not build new settlements, but will only allow "natural growth," and there are plans to dismantle about two dozen illegal settlement outposts in the West Bank.
"So that was a very big step-I think unfortunately that the U.S. didn't see it as such a big step. And he was able to get his coalition to agree to that and to not attack him. So from that point of view I would give him a good score," he said.
The Israeli public is divided on the settlement issue: The poll showed that 46 percent of respondents support continuing construction in the West Bank even if it means a confrontation with the U.S. - 44 percent were opposed.