Ramallah: The Palestinian leadership yesterday rejected a report which said Palestinians were ready to trade their UN bid in exchange for releasing their tax revenues which Israel has frozen after the country was admitted as a full member at the Unesco.

The Haaretz said the Palestinian National Authority (PNA) has offered the US a temporary deal where the PNA would freeze all moves at the UN and would not apply to achieve full membership at the various UN agencies until the end of January 2012.

The Palestinians will not ask the UN General Assembly to upgrade their observer status to non-member observer state. They will however go ahead with their attempts at the UN Security Council where the Palestinian President Mahmoud Abbas is expected to ask for a vote by the end of December. The move is doomed to defeat, even if the Palestinians managed to recruit nine votes, as the US will veto the resolution.

Speaking to Gulf News, Tayseer Khalid, a member of the PLO Executive Committee said they had many open options on the table to respond to the Israeli freezing of the Palestinian funds. "The Paris Economic Agreement is currently under careful review of the Palestinian leadership," he said.