The Lieberman Plan, also known in Israel as the "Populated-Area Exchange Plan", was proposed in May 2004 by Avigdor Lieberman, the leader of the Israeli political party Yisrael Beiteinu. The plan suggests an exchange of populated territories – territories populated by both Arabs and Jews – between Israel and the Palestinian Authority.

Lieberman maintains that everywhere in the world where there are two peoples with two religions a conflict exists and notes that in the Israeli–Palestinian conflict, the situation is worse as there is not only a religious conflict but also a nationalistic one. Therefore, the proposition is based on 'reduction of conflict' and maintains that the two peoples could live together but it would make no sense to have one living inside the other. On top of this, Lieberman maintains that it makes no sense to create a Palestinian state that has no Jewish people while Israel is turned into a dual-population state with more than 20% of minorities.

In general, Arab Israelis are opposed to the plan and many believe it constitutes racism. The Israeli left opposes the plan. Legal experts have cast doubt on the legality of such a move under Israeli and international law.