The Taoiseach called for a major international initiative on the Middle East peace process at the end of his official visit to the region yesterday.
Mr Ahern, who met political leaders in Lebanon, Israel and Gaza during his four-day tour, said the situation was volatile and there was not a great deal to be optimistic about.
"It seems to me that some considerable initiative by the US, given its influence in the region, underpinned by the EU, is required. Some formula has to be worked out that either moves the implementation of the Wye Agreement into a fast track, or devises something outside of it."
He said the Israeli Prime Minister, Mr Benjamin Netanyahu, had indicated on Tuesday that he might be open to considering a formula outside the agreement.
Mr Ahern added that such an initiative would have to give credibility to the position of the Palestinian leader, Mr Yasser Arafat, with whom he had talks on Wednesday.
"It is as complicated or as simple as that, whatever way you want to put it. If you look at the complications, they are horrendous. Potentially, you could have trouble here, there and everywhere."
Before leaving Gaza for Dublin, Mr Ahern said he would give his views to his European colleagues in informal discussions at next month's EU Council meeting.
He regarded his Middle East visit, the first official one to be undertaken by a Taoiseach, as worthwhile. Apart from the political aspect, he had wanted to meet Irish workers, including the UNIFIL soldiers serving in South Lebanon.
Yesterday, Mr Ahern visited a UN health centre in Gaza, where he was briefed by the authorities. Then he toured Jabalia refugee camp, north of Gaza, which houses close on 90,000 refugees in a 1.4 km area.
The Taoiseach was shown around the camp, the largest of eight refugee camps, by UN officials and saw first-hand the economic deprivation which is a marked feature of life in Gaza.
Mr Ahern got a warm welcome when he visited an agricultural institute. A large banner read: "Palestinian Farmers Union welcomes Prime Minister of Ireland, Bertie Ahern, to Gaza."
The Taoiseach later met members of the Palestinian Legislative Council, before leaving for Gaza International Airport with Mr Arafat. He and Mr Ahern had a brief chat and reviewed a guard of honour before Mr Ahern left.
