Israel to support division of Jerusalem: Olmert deputy

As part of recent negotiations between the sides, Deputy Vice Premier Haim Ramon has proposed turning over many of the Arab neighbourhoods of east Jerusalem to the Palestinians. Ramon said the Palestinians could establish the capital of a future state in the sector of the city, which Israel captured from Jordan in the 1967 Mideast war.

In return, Israel would receive the recognition of the international community, including Arab states, of its sovereignty over Jewish neighborhoods and the existence of its capital there, Ramon said.