"Jerusalem is a final status issue. Israel and the Palestinians have agreed to resolve its status during negotiations. We will support their efforts to reach agreement on all final status issues," U.S. State Department said in a statement on Sunday.

    It would be the first official response by the administration to Prime Minister Benjamin Netanyahu's claim that all of Jerusalem will always remain under Israeli sovereignty.

    Speaking at a ceremony marking 42 years since Israel captured East Jerusalem from Jordan in the 1967 Six-Day War, Netanyahu said that the united Jerusalem is Israel's capital and "will never be partitioned and divided," and that he had made the same declaration during his recent meeting with U.S. President Barack Obama.

    The status of Jerusalem remains one of the core issues in the Israeli-Palestinian conflict. Israel's annexation of East Jerusalem has not been internationally recognized, and the Palestinians want to East Jerusalem to be the capital of a future Palestinian state.

    Palestinian President Mahmoud Abbas's aides said Netanyahu's claim on Jerusalem was a threat to the peace process and a setback to the goal of a two-state solution, which is strongly supported by the Obama administration.