PM denies reports he agreed to J'lem as Palestinian capital

Prime Minister Benjamin Netanyahu on Tuesday denied reports stating that he agreed with Egypt on the declaration of Jerusalem as the capital of a Palestinian state.

A statement from the Prime Minister's Office said: "The prime minister has not changed his declared stance, and insists in all his political talks that united Jerusalem will remain under Israeli sovereignty in any peace agreement and that Israel's defense borders will not be paved back to the 1967 lines." (Roni Sofer)