Likud party chairman and Knesset Opposition Leader Binyamin Netanyahu joined Jerusalem Mayor Uri Lupolianski, numerous legislators and hundreds of other activists Wednesday at Ir David (the City of David) to form a new coalition for Jerusalem with the slogan painted in blue on a huge white banner, "Watch Over Jerusalem."

Netanyahu, Likud Knesset Members Reuven Rivlin and Michael Eitan and others addressed those who came to fight Prime Minister Ehud Olmert's plan to split Jerusalem with the Palestinian Authority (PA).

The speakers at Ir David, Jerusalem's most ancient neighborhood, called for Israelis to unite to block the Prime Minister from carrying out his plan, which he intends to discuss at the upcoming Middle East summit in Annapolis.

Earlier in the day, a bill that will require a two-thirds Knesset majority to change the status of Jerusalem passed its first reading in the Knesset by a vote of 54 to 24. The bill was supported by members of the government coalition as well as by opposition lawmakers.

If approved by a committee and passed in its next two readings, the law will require that any changes to the status of Israel's capital city be approved by at least 80 of the 120 legislators.

The PA is demanding that Israel surrender the entire area of Jerusalem that was restored to the Jewish State after the 1967 Six-Day War to be used as the capital of a new PA state.

Olmert informed the Council of Jewish Communities in Judea, Samaria and Gaza Tuesday that he is permanently freezing building in those areas. He also reportedly did not flinch or make any attempt at denial when Council members raised the possibility that he would destroy Jewish towns and expel over one hundred thousand Jews from their homes and livelihood.

Although Netanyahu has proclaimed his opposition to Olmert's plans, veteran Likud officials have expressed concerns about their party chairman's ability to stay the course against concessions the Prime Minister might offer in Annapolis.

They demanded in a letter to Netanyahu this week that he disavow, in advance, any commitments that the Prime Minister might make at the summit. Netanyahu voted in favor of the 2005 expulsion of Jews from Gush Katif and destruction of their towns.

Former Speaker of the House and Likud Knesset member Dov Shilansky told Arutz-7 that he believes the new generation of party members need "supervision" in order to avoid repeating the mistake in the 2005 Disengagement from Gush Katif.

"I have misgivings about Netanyahu regarding Gush Katif and his vote in favor of the operation," Shilansky added, "but now he is my candidate for Prime Minister and we must remain vigilant so he does not fail again."