Washington DC  The US State Department rejected Israeli Prime Minister Benjamin Netanyahu's declaration that Israel will never concede East Jerusalem, which Palestinians seek as the capital of a future state of Palestine.

"Jerusalem is a final status issue. Israel and the Palestinians have agreed to resolve its status during negotiations. We will support their efforts to reach agreements on all final status issues," the State Department said in a statement released when asked to respond to Netanyahu's remarks.

At an official ceremony marking Israel’s Jerusalem Day on Thursday, Netanyahu said "United Jerusalem is Israel's capital. Jerusalem was always ours and will always be ours. It will never again be partitioned and divided."

After occupying East Jerusalem in 1967, Israel annexed the area in 1981, declaring the whole city its “eternal capital,” a move not recognized by the international community.

US policy has also historically rejected Israeli sovereignty in occupied East Jerusalem. The US maintains its embassy in Tel Aviv for this reason.