In a New Year's Day interview with The Jerusalem Post, Israeli Prime Minister Ehud Olmert reiterated his belief that Israel has no choice but to allow the division of Jerusalem and the unprecedented establishment of a Muslim Arab capital on the city's eastern side.

Olmert claimed that even Israel's staunchest supporters in the international community speak of a divided Jerusalem, and insisted the time had come for Israelis to come to the same realization.

Pressure for Israel to follow through on Olmert's intentions are expected to increase next week when US President George W. Bush visits the region in an effort to push his agenda of overseeing a final Israeli-Palestinian peace deal by the end of the year.