Israel suspends tax plan on Jerusalem churches after three-day closure of Church of Holy Sepulchre
In a statement, Prime Minister Binyamin Netanyahu's office said a professional team was being established to negotiate with church officials to "formulate a solution."
"As a result, the Jerusalem Municipality is suspending the collection actions it has taken in recent weeks," it said.
There was no immediate reaction from church leaders, and it was unclear whether the Church of the Holy Sepulchre would reopen.
Roman Catholic, Greek Orthodox and leaders of other Christian denominations closed the famed church on Sunday to protest an order by Israeli-run Jerusalem Mayor Nir Barkat to begin taxing their properties.
The church is revered as the site where Jesus was crucified and resurrected, and the decision closed one of Jerusalem's most visited holy sites just ahead of the busy Easter season. The tax move was seen as a major blow to Palestinian Christians in the contested city.
Barkat said his decision affected only commercial properties, such as hotels, restaurants and offices, and not houses of worship. He said other cities followed similar practices worldwide.
"As the mayor of the city of Jerusalem, my goal and role is to make sure people pay their taxes," he said in an interview earlier Tuesday. "We have no negative or bad intentions here."
The churches accused Barkat of acting in bad faith and undermining a longstanding status quo. They say their non-church properties still serve religious purposes by providing services to pilgrims and local flocks.
In Tuesday's announcement, Netanyahu said Cabinet Minister Tzachi Hanegbi would head the new negotiating committee, which will include representatives from the city, and the finance, foreign and interior ministries.
"The team will negotiate with the representatives of the churches to resolve the issue," it said.
In addition to suspending tax collection, Netanyahu's office said that proposed legislation governing the sale of church lands in Jerusalem was also being suspended.