The Palestinian Authority (PA) network news Thursday told its audience that Foreign Minister Silvan Shalom said that Jerusalem is negotiable. Shalom has been adamant that Israel will not surrender any part of Jerusalem or the areas around it. The official PA network also quoted Shalom as supposedly saying that PA chairman Mahmoud Abbas (Abu Mazen) should fight Hamas "before they destroy the Palestinian dream."

The PA often has reported news to its readers and listeners which is different from what it broadcasts to foreign media. Israel has charged that the PA continues to incite the Arab population.
 
http://www.israelnn.com/news.php3?id=90731
 
I don't really see how Jerusalem can become the Palestinian capital before the great tribulation period which lasts 42 months.
 
Revelation 11:2  But the court which is without the temple leave out, and measure it not; for it is given unto the Gentiles: and the holy city shall they tread under foot forty and two months.