President Trump is set to propose full sovereignty for Israel over Jerusalem’s holiest site as part of the most favourable peace plan ever offered to it, raising fears of renewed conflict over the contested land.

Under the plan Israel is expected to take up to 30 per cent of the occupied West Bank, including the Jordan Valley and Jewish settlement blocs, as well as sovereignty over the Old City site known to Jews as the Temple Mount and to Muslims as the Haram al-Sharif.

The plan is not expected to hold out any immediate prospect of a Palestinian state. It envisages the Palestinian Authority forgoing any right to military power and recognising Israel as a Jewish state. It is not expected to make any provisions