Secret talks between Israel and the United States have resulted in a proposal that Israel will lease lands from the Palestinian Authority in exchange for the establishment of an independent state, according to a Friday report by the London-based Arabic newspaper Ash-Sharq Il-Awsat.

Informed sources told the newspaper that the lands are in eastern Jerusalem and the Jordan Valley. The lease period would range from 40 to 99 years. The Prime Minister's Office and the U.S. administration refused to respond to the report.