United States President Donald Trump yesterday said Jerusalem will remain Israel's undivided capital as he unveiled his Middle East peace plan aimed at solving the Israeli-Palestinian conflict, describing it as historic and a giant step towards peace.

Standing along with the Israeli Prime Minister Benjamin Netanyahu in the White House, President Trump proposed a two-state solution and said no Israelis or Palestinians would be uprooted from their homes. He said that under his vision, Jerusalem will remain Israel's undivided, very important capital. He proposed Palestinian capital in Eastern Jerusalem and that US will set up its embassy there.

No Palestinian official was present at the launch. Palestinians have already rejected the leaked proposals.

Mr Trump said, the plan calls for a four-year freeze in Israeli settlement activity, doubling of Palestinian territory. Mr Netanyahu hailed Trump's  plan as historic day for Israel.  

Meanwhile, Palestinian Islamist movement Hamas immediately rejected the US' Israeli-Palestinian peace proposal. Palestinian President Mahmoud Abbas says Trump peace plan will not pass.

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