Israeli Prime Minister Benjamin Netanyahu has said Jerusalem will not be shared with the Palestinians.
His announcement on Sunday dismissed Defense Minister Ehud Barak's call to share the holy city. Barak's words were not representative of the views of the government, an Israeli official informed The Associated Press.
"Those remarks were not coordinated with the prime minister," said the official, who spoke on condition of anonymity because Netanyahu has not responded publicly to Barak's remarks.
The prime minister's decision served as another blow to the idea of a two-state solution - a nation for Israel and one for the Palestinians.
Netanyahu's decision followed the Obama administration's announcement last week to abandon its call for a settlement freeze in the West Bank.
Meanwhile, U.S. Secretary of State Hillary Clinton expressed frustration with the Israeli-Palestinian impasse.
"I understand and indeed I share the deep frustrations of many of you in this room and across the region and the world," she said.
"But rather than dwell on what has come before, I want to focus tonight on the way forward, on America's continuing engagement in helping the parties achieve a two-state solution that ends the conflict between Israelis and Palestinians once and for all, and on what it will take, finally, to realize that elusive, but essential goal," she added.