The head of the opposition in Jerusalem's municipality, Nir Barkat, said that Vice Prime Minister Chaim Ramon and PA Businesman Muhammad Rashid have agreed on the division of Jerusalem in a secret round of negotiations.

Barkat said he had learned of the matter from senior political-defense sources.

Foreign Minister Tzipi Livni refused to confirm or deny the reports. She wrote Barkat that "the negotiations between the Israeli and Palestinian groups are being carried out based on an agreement between the sides which says that 'until everything is decided, nothing is decided.'"