The Palestinian Authority Thursday denied a report that claimed that the Palestinians had offered to freeze the application for membership in the UN in return for the release of tax revenues held by Israel and continued US financial support.

The report in Haaretz claimed that the PA was prepared to suspend its efforts to achieve full membership in the UN and some of its agencies if Israel and the US resumed the transfer of funds to the Palestinians.

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“This talk is nonsense and untrue,” said Chief PLO negotiator Saeb Erekat. “We are determined to proceed with the [statehood] application until we achieve our rights.”

Hanan Ashrawi, member of the PLO Executive Committee, was also quoted by the Ma’an News Agency as denying the report which, she said, was aimed at creating “confusion.”

Ashrawi also claimed that the report was in the context of Israeli “maneuvers” to dissuade the Palestinians from going ahead with their statehood bid.

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