Abul Gheit affirmed that the conflict "requires a comprehensive and just peace based on a two-state solution with an independent Palestinian state," a statement said after he met UN chief Antonio Guterres in Cairo.
His comments came a day after US President Donald Trump met Israeli Prime Minister Benjamin Netanyahu and suggested a two-state solution was not necessary.
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Guterres had also called for a two-state solution on Wednesday in a speech in Cairo, saying there was "no Plan B".
The Arab League statement said he and Abul Gheit "agreed that the two-state solution remains the real way to achieving" peace.
For the better part of half a century, successive US governments -- both Republican and Democrat -- have backed a two-state solution.
Palestinian Liberation Organisation secretary-general Saeb Erekat said the PLO remained committed to two states and would oppose any system that discriminated against Palestinians.