Joe Biden gestures as he addresses the 79th United Nations General Assembly at UN headquarters in New York on Tuesday. Reuters

US President Joe Biden on Tuesday warned against "full-scale war" in the Middle East, urging leaders to find diplomatic solutions in both Lebanon and Gaza.

"Full-scale war is not in anyone's interest," Biden told the UN General Assembly after Israeli strikes in Lebanon targeting Hizbollah killed more than 550 people.

"Even though the situation has escalated, a diplomatic solution is still possible," Biden said.

"In fact, it remains the only path to lasting security to allow the residents from both countries to return to their homes on the border safely. And that's what we are working tirelessly to achieve," he said of the escalating conflict in Lebanon.

The bloodshed in Lebanon came after months of US efforts to broker a ceasefire between Israel and Hamas in the Palestinian territory of Gaza have failed.

Biden said he was still pushing for a ceasefire in the nearly year-long war there. US officials say both sides agree on the broad outlines.

"I put forward with Qatar and Egypt a ceasefire and hostage deal. It's been endorsed by the UN Security Council. Now is the time for the parties to finalise its terms," Biden said.

The deal would "bring the hostages home and secure security for Israel and Gaza free from Hamas's grip, ease the suffering in Gaza and end this war."

Agence France-Presse