Sheikh Salman bin Hamad al-Khalifa assured the former British prime minister of Bahrain’s "commitment to the Arab peace initiative" first adopted in Beirut in 2002, BNA said.
The Saudi-inspired plan, which was re-adopted at an Arab summit in March, "represents the Arab stance towards achieving peace," BNA added.
The Arab blueprint offers Israel normalisation of ties with Arab nations in exchange for full withdrawal from Arab land occupied during the 1967 Six-Day War, the creation of a Palestinian state and a return of refugees.
Blair later travelled on to Abu Dhabi, where he met Emirati Foreign Minister Sheikh Abdullah bin Zayed al-Nahayan, who called for "real mechanisms to achieve peace in the region", the Gulf state’s WAM news agency reported.
His tour comes amid renewed diplomatic moves to inject new life into the dormant Israeli-Palestinian peace process.
The Jordanian and Egyptian foreign ministers held talks on Wednesday in Israel to promote the Arab peace initiative, while US President George W. Bush has called for an international Middle East meeting in the autumn.