Over the weekend, Jordan hosted Palestinian officials as well as officials from Egypt, Morocco, Saudi Arabia and the United Arab Emirates to go over how the group would respond to the USA move.
Further, Moscow indicated last April that it was willing to consider West Jerusalem as the capital of Israel and East Jerusalem as the capital of a future Palestinian state, demonstrating a much greater desire to accommodate both sides than the Trump administration.
The move drew worldwide condemnation, with the U.N. General Assembly overwhelmingly voted in favor of a resolution calling on Trump to rescind his decision.
Citing three Western diplomats who asked to remain anonymous, the reports said the grant was due to be delivered on January 1 and that the amount frozen is one-third of the USA annual funding to UNRWA.
The foreign ministers' meeting took place just four days after Israel's parliament approved a bill increasing the number of MPs needed to approve Israel giving up sovereignty of any part of Jerusalem - ultimately making it more hard to divide the holy city and further dashing hopes for a two-state solution.
"We have specific requests, the most important of which is the recognition of a Palestinian state with Jerusalem as its capital according to the June 4th 1967 borders".
The report was based on audio recordings obtained by the Times, in which Ashraf al-Kholi, the Intelligence officer, can be heard telling the hosts that Egypt, like its "Arab brothers, are denouncing this matter", but that "after that, this thing will become a reality".
Jordanian authorities confirmed after the talks the centrality of Jerusalem as a fundamental issue for Arabs and both Muslims and Christians, and that it is the key to peace in the region.
UNRWA's media advisor Adnan Abu Hasna told Xinhua that his agency was established upon a resolution of the United Nations General Assembly, where the majority of members voted in favor of extending UNRWA's mandate.
The protests evening included a speeches from leaders and activists of the Muslim community in Britain, and an exhibition about popular and traditional food which income goes to support the Palestinians in the holy city.
Trump's December recognition of Jerusalem as Israel's capital and his promise to move the US embassy there sparked violence across the Muslim world.
Similarly, it is doubtful he can offer anything to the Palestinians that would induce them to accept the loss of East Jerusalem in exchange for the establishment of a Palestinian state in the West Bank and Gaza (assuming Israel would agree to even that).