More than 88 homes in the Arab-dominated Silwan valley area of the city are scheduled to be removed to make way for a tourist centre. The plan has been criticised by Palestinians and the United Nations.

Nir Barkat, the mayor of Jerusalem, has now opened the plan up to “debate” with the area’s Palestinian residents after an intervention by the Israeli Prime Minister, Binyamin Netanyahu.

Silwan is designated a "flashpoint" area by Israeli authorities — and with tensions already running high in East Jerusalem following rioting in several neighbourhoods last weekend, there are concerns that the plan could lead to further violence.

A statement issued by the Prime Minister’s office said that Mr Netanyahu told Mr Barkat he was concerned that “parties interested in sowing discord” would present to the world a “distorted picture” of the plan — referred to by the mayor as the “King’s Garden” because Israelis believe it is close to where King David wrote his psalms.

Several governments, including those of Britain and the US, have called on Israel to stop demolishing Palestinian homes in East Jerusalem that were built without permits.

“We were forced to build here without permits. For years we applied and nobody allowed us anything. What were we supposed to do?” said Ahmed Abu Diab, one of the Silwan residents whose home faces demolition.

The Silwan neighbourhood is home to about 50,000 Palestinians and 70 Jewish families. Mr Barket has said that his renovation plan will provide new housing and improve the area with a tourist park including a promenade and commercial area.

“The area’s infrastructure will be upgraded. A neglected area will become a successful area. It will be a win-win situation for all,” he said.

Palestinians regard it as a further land grab by Israel. “This is the way that Israel will take control of all Jerusalem. They say it is for us, but why do we need a park here? Who ever heard of taking away a home for a park?” Mr Abu Diab asked.

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