The country's (Israel) population is approximately 6.8 million, including 5.2 million Jews, 1.3 million Arabs, and some 290,000 other minorities.
The population of the Gaza Strip was approximately 1.4 million, of the West Bank (excluding East Jerusalem) approximately 2.4 million, and of East Jerusalem approximately 414,518, including 177,333 Israelis.
By my calculations: 1.3 + 2.4 + 1.4 + .41 - .18 = 5.33 million Arabs. As compared with 5.2 million Jews. This is of course the sort of doomsday scenario for Israeli democracy that numerous people have warned of. I always heard that this demographic shift would occur in 2010. Guess not.
UPDATE: Just found something else on this. The Electronic Intifada has this article from March 1, 2005.