He said that such a move would allow "all Palestinians - including Christians, Muslims and Jews" to live together in peace.
The Iranian president also claimed that the "brutalities in Gaza have not all been published."
"The international community is impatiently waiting for the murderers of the defenseless people of Gaza," he said, in reference to alleged war crimes by the IDF during Operation Cast Lead.
Ahmadinejad went on to say that his country was ready to shake all hands "that are honestly extended to us."
He announced Iran's commitment to participate in building durable peace and security worldwide for all nations while defending the country's legitimate and legal rights, in an apparent reference to Iran's nuclear program, which was not mentioned in his speech.
Ahmadinejad portrayed Iran as a defender of poor developing countries, lashing out at unbridled capitalism which he said has reached the end of the road and will suffer the same fate as Marxism.
The US delegation walked out, and most of the hall was empty for the speech.