No one ever suggested that the mayor of any city is a negotiating partner with the Pals. If you do want to go down that route, this tension is peanuts in comparison to the Fatah vs Hamas conflict. Who is Israel "supposed to negotiate with" when you 2 different authorities of THE SAME level of authority.
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ISIS claims responsibility for Saturday's attack that killed 4 near Cairo (AP)
from the article: Mayor defends plan to raze Palestinian homes in East Jerusalem