Mahmoud Abbas has called America’s recognition of Jerusalem as Israel’s capital “a slap in the face”.

The Palestinian President told a meeting of senior leaders in Ramallah that the Oslo peace process was over, saying “Israel ended Oslo”.

He also said the Palestinian Authority had been offered the village of Abu Dis, on the outskirts of east Jerusalem, as its capital.

This is not the first time that Abu Dis has been proposed as the centre of a Palestinian state – at one point construction of a Palestinian parliament building was initiated there, only to be abandoned halfway through.

“We can say no to anyone... And we have now said ‘no’ to Trump and others. No, we will not accept his plan,” Mr Abbas said.

“We told him that the deal of the era is the slap of the era... We will repel it.”

Mr Trump has caused widespread anger following his decision last month to recognise Jerusalem as Israel’s capital city.

In the same meeting, Mr Abbas announced that “Israel has imported frightening amounts of drugs in order to destroy our younger generation. We must be careful, and for this reason we created an authority for fighting drugs.”

His remarks came barely a month after a speech by Mr Abbas to the Organisation of Islamic Co-operation in which he said Jews “were excellent in faking and counterfeiting history and religion… it is mentioned in the holy Koran that they fabricate truth.”

The Palestinian leadership is due to meet in Ramallah tomorrow to come up with a united response to the US policy shift.