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"Jerusalem is the eternal capital of the state of Palestine", Abbas told delegates at a meeting on Sunday called to discuss the United States' recognition of Jerusalem as the capital of Israel.

Addressing the future role of the United States in the peace process, Abbas said: "We will not accept the USA as a mediator after what they did".

Palestinian president Mahmud Abbas said that Israel is a "colonial project that has nothing to do with the Jews" in a speech of the PLO's Central Committee on Sunday.

He also called for an overall strategy to face the US decision on Jerusalem and Israeli measures in the city, which the Palestinian Authority insists is going to be the capital of its future independent state.

Last week, President Donald Trump said the United States may withhold future aid payments to the UN Relief and Works Agency (UNRWA) over what he called the Palestinians' unwillingness to talk peace with Israel.

The eastern portion of the city was captured by the Israeli Defensive Force (IDF) during the Six Days War in June 1967 and now forms part of the West Bank.

"We will not accept what the U.S.is going to propose to us and will not accept its mediation after its Jerusalem crime, but we will accept only an global mediation in the peace process with a goal to end the occupation", he said, according to WAFA.

The Palestinian Health Ministry said 16-year-old Amir Abu Musaed was shot in the chest in unrest along Gaza's border fence with Israel. He said the Palestinians remain committed to negotiations, but are ready to reject what they fear will be an unfair proposal from the White House. Trump has responded by threatening to cut aid and to reduce US payments to the U.N.'s Palestinian refugee agency.

"We will not accept anything the United States may try to impose on us and we will not accept its mediation following that crime", said Abbas, referring to Trump's Jerusalem decision.

He singled out two individuals for particular criticism: "The American ambassador to Israel [David Friedman] and [the US Ambassador to the UN] Nikki Haley bring shame on the administration, if it has any self-respect". However, Abbas said that the 1993 Oslo peace agreement, in which the Palestinian Liberation Organization recognized Israel, was already dead.

Since the 1993 Oslo Accords, the U.S. has been among the major donors to the PA, created to manage limited self-governance in parts of the West Bank and the Gaza Strip.