RAMALLAH, Dec. 3 (Xinhua) -- The Palestinian National Authority(PNA) holds intensive contacts with the European Union (EU) to adopt a resolution on dividing Jerusalem for Israel and the Palestinians, an official said Thursday.

    "The European step regarding Jerusalem is a qualitative development to deal with the Palestinian cause and the meaning of conflict with the Israeli occupation," said Yasser Abed Rabbo, an aide to Palestinian President Mahmoud Abbas.

    Sweden, which holds the EU's rotating presidency, intends to submit a draft resolution to the EU's foreign ministers next week calling for dividing Jerusalem as a capital for Israel and the future Palestinian statehood.

    Peace talks between Israel and the PNA have stopped for nearly a year due to the continuation of settlement expansion in the occupied territories.

    Israeli Prime Minister Benjamin Netanyahu has ordered a 10-month freeze in settlement building but excluded East Jerusalem from his decision. His offer was rejected by the PNA.

    "The EU's document emphasizes that the problem was in the occupation and it can't be resolved without ending the occupation, including East Jerusalem," Abed Rabbo said.

    Meanwhile, Abed Rabbo said the PNA was still determined to grab an international recognition of a Palestinian state on the territories that Israel has occupied since the 1967 war.