The status of Jerusalem and the Palestinian refugee issue have in the past been major deal-breakers.
Mkhaimar Abusada, a political scientist at Al-Azhar University in Gaza, says that on the issue of refugees, many Palestinians are prepared for realistic solutions.
"Most people know that they will not see the return of millions of Palestinians into Israel, or what's known as historic Palestine," he says. "Deep in our hearts we know it isn't possible, but people would like to see an acknowledgement of Israel's moral and historic responsbility."
But the idea of putting the holy sites of Jerusalem under international control is something Hamas, he says, as well as many other Muslims, will not accept.
"Palestinians would more likely accept this formula on the refugee than it would the internationalization of Jerusalem. Jerusalem is full of Islamic holy places over which Palestinains are not ready to make concessions," Dr. Abusada says.
Jerusalem Mayor Nir Barkat, speaking Wednesday on a popular Israel Radio program, also indicated that any plan to split the holy city was a non-starter because Israel would not agree to divide its capital. On Thursday Israel celebrates Jerusalem Day, marking 42 years of what it considers to be reunification of Jerusalem – achieved during the 1967 Six-Day War – and Palestinians consider to be an occupation.
"Everyone who knows this city knows that it's not practical, it's not possible ... and it won't happen," Mr. Barkat said. "It's what's called in English, 'wishful thinking.'
"Jerusalem needs to stay united and whole – there's no other way."
Palestinians preoccupied with internal divides