Underneath the homes and ragged streets of the Palestinian neighbourhood of Silwan lie the remnants of a glorious Jewish past: coins, seals, a water tunnel hewn by a Judean king 2,700 years ago, a road that led to a biblical temple.

But archaeology is hard-wired into the politics of modern-day Arab-Israeli strife, and new digs to unearth more of this past are cutting to the heart of the charged argument over who owns the ancient city of Jerusalem today.

Israel says it's reconnecting with its ancient heritage. Palestinians contend the archaeology is a political weapon to undermine their own links to Jerusalem.

Lying on a densely-populated slope outside the walled Old City, the area is known to Israelis as the City of David, named for the legendary monarch who ruled a Jewish kingdom from this spot 3,000 years ago. It is the kernel from which Jerusalem grew.

But Silwan is in east Jerusalem, which Israel captured from Jordan in 1967 and which Palestinians claim for the capital of a future state.

Palestinians and Israelis are trying again to negotiate a peace deal, one which must include an agreement to share Jerusalem. The collision in this neighbourhood -- between Silwan and the City of David -- encapsulates the complexities ahead.

The organisation funding the digs, the Elad Foundation, is associated with the religious settlement movement and is committed to preventing Israel from ever ceding the area in a peace deal. It says it has a yearly budget of close to US$10 million (euro6.8 million), nearly all of it from donations, and is buying up Palestinian homes in Silwan to accommodate Jewish families. Around 50 have moved in so far, living in houses flying Israeli flags and guarded by armed securitymen paid for by the Israeli government.

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