JERUSALEM: Israeli Defence Minister Avigdor Lieberman said Monday that US President Donald Trump has a "historic opportunity" as he weighs whether to recognise Jerusalem as Israel's capital.
The Palestinian Authority meanwhile formally notified the US government of its opposition to any plan to move the US embassy to Jerusalem or recognise the disputed city as the Israeli capital.
Speculation over Trump's intentions comes as he faces a deadline on Monday over whether to sign a legal waiver that would delay by six months plans to move the US embassy to the Holy City.
There have been suggestions he will begrudgingly sign the waiver for a second time this week, but according to diplomats and observers, he may make a speech on Wednesday announcing his support for Israel's claim on Jerusalem as its capital.
"I think there is a historic opportunity to rectify the injustice," Lieberman told senior members of his Yisrael Beitenu party in parliament, a party statement said.
The international community, including the United States, does not formally recognise Jerusalem as Israel's capital, insisting the issue can only be resolved through final status negotiations.
Central to the issue of recognition is the question of the US embassy.
All foreign embassies are located in Tel Aviv with consular representation in Jerusalem.
"I very much hope that President Trump's decision to move the US embassy to Jerusalem is the final decision, and I hope to see an American embassy here in Jerusalem next week or next month," Lieberman said.
The Palestinian leadership has warned of the dangers of such a move.
Ziad Abu Amr, the deputy Palestinian prime minister, officially informed US Consul General Donald Blome on Monday of their opposition.
Palestinian president Mahmud Abbas has been speaking to foreign leaders to lobby against such a recognition.
Abu Amr "informed the US Consul General Donald Blome that moving the American embassy to Jerusalem or the US administration recognising Jerusalem as the capital of Israel is unacceptable," a statement said, after a meeting in Ramallah.
It said any such move would be "disrespectful" and "contrary to the role of the US administration as a mediator and sponsor of the peace process".
The statement said doing so "disqualifies it from this role, and closes every door to continuing a serious peace process".
The Palestinian Islamist movement Hamas called Saturday for a new "intifada" if Washington recognises Jerusalem as the capital of Israel or moves its embassy to the disputed city.
Lieberman said that Israel was prepared to deal with any fresh unrest over the issue.
"If someone tries to provoke difficulties or riots around the transfer of the embassy, we will cope with it," he said.
Israel occupied east Jerusalem and the West Bank in the 1967 Six-Day War. It later annexed east Jerusalem in a move never recognised by the international community.
Israel claims the entire city as its undivided capital, while the Palestinians want the eastern sector as the capital of their future state.