A secret agreement reached between Jerusalem Mayor Nir Barkat and strictly Orthodox rabbis to classify neighbourhoods in Israel’s capital as “Charedi” and “non-Charedi” has infuriated the city’s political establishment.

The unofficial leaked deal will establish guidelines for funding and allocations of school and kindergarten buildings. Under the terms of the agreement, in neighbourhoods classified as “non-Charedi”, strictly Orthodox families living in the area will be allocated buildings for nursery schools only, but will have to bus their older children to schools in “Charedi” neighbourhoods.

It also recognises demographic shifts in areas which were originally built for “mixed” communities and have in the past two decades become mainly populated by strictly Orthodox families.

Mr Barkat has denied a “political deal” over Jerusalem’s planning future.