Report: 'Deal of century' not to include Palestinian state with Jerusalem as its capital

US President Donald Trump's "deal of the century" to achieve peace in the Middle East will not include establishing a Palestinian state with Jerusalem as its capital, rather a Palestinian autonomy in the Gaza Strip with political and economic links to the West Bank, the Al-Quds newspaper reported on Thursday.

In addition, the Palestinians will hold negotiations over Area C of the West Bank, which is under Israeli military control. Furthermore, Israeli settlements will remain under Israel's jurisdiction, but will not be expanded, according to Al-Quds.

The deal will also include strengthening the cooperation between Israel, Jordan and the Palestinians over the management of the Al Aqsa mosque.