That would be a sensible and acceptable solution for Jerusalem. Israel doesn't want 200,000+ Palestiniian Arabs becoming Israeli citizens and voters, which would be the outcome if they held on to E J'sem. Palestine doesn't want 200,000+ Jewish settlers complicating matters, which would be the case if the large Jewish settlements around Jerusalem remained in a Palestinian E J'sem. And joint control over the Old City and Holy Basin is the only possible compromise between two parties who want it all for themselves. Both sides will give a big sigh of relief if what Barak says goes ahead.
Yemeni ISIS affiliate claims responsibility for Sanaa mosque bombing (Reuters)
from the article: Barak to Haaretz: Israel ready to cede parts of Jerusalem in peace deal