Palestinian Authority Chairman and Fatah chief Mahmoud Abbas (Abu Mazen) reiterated on Wednesday his claim that Israel is negotiating with him over the status of Jerusalem and over the issue of Arab refugees from Israel's 1948 War of Independence.

"The negotiations are over Jerusalem," Abu Mazen stated bluntly from his headquarters in Ramallah.

Regarding the talks with the PA, Prime Minister Ehud Olmert will only state that he is intent on reaching an agreement by year's end. US Secretary of State Condoleezza Rice is due in Israel on Saturday night for urgent discussions with PA and Israeli officials.