Public Security Minister Gilad Erdan ordered on Tuesday the closure of a PA-funded cartography office in Jerusalem.
The office was shut down for a minimum of six months, a police statement said. Likewise, the office's director was arrested.
Israeli officials said that its head, Khalil Tafakji, had been working with the Palestinian Authority to monitor the sale of land by Palestinians to Israeli Jews in eastern Jerusalem.
Erdan said Tafakji's work had been "part of the Palestinian Authority's plan to undermine our sovereignty in Jerusalem and terrorize Arabs selling real estate to Jews in the city."
"I'll continue to act assertively to prevent Palestinian sovereignty in Jerusalem."
Selling land to Jews is punishable by death in the Palestinian Authority.