Olmert: Year's end won't bring peace deal

JERUSALEM, July 28 (UPI) -- Israeli Prime Minister Ehud Olmert does not think an Israeli-Palestinian peace pact will be made before the year is over, an Israeli official said.

Olmert told Parliament's Foreign Affairs and Defense Committee Monday the status of Jerusalem was the top reason a peace deal would not be reached, a senior Israeli official told CNN.

Palestinian Authority President Mahmoud Abbas signed a joint agreement with Olmert in November, promising to make efforts to reach a settlement before the year's end, the report said.

Palestinian officials have said they want East Jerusalem to be a Palestinian state's capital, while Israeli officials say East Jerusalem belongs to its capital.

Olmert also said Monday Israeli and Palestinian officials were nearing a deal on other "core" concerns, including border control and refugee issues.