Israeli Prime Minister, Ariel Sharon, issued an official statement, on Tuesday at night, denying reports that he would agree to a compromise on Jerusalem and the establishment of a Palestinian state in Gaza and 90% of the West Bank as part of a peace deal.

Kalman Gayer, one of Sharon’s advisors, told the Newsweek newspaper that Sharon believes that the Palestinian Authority (P.A) will not deliver peace to Israel, or make compromises, which includes voiding the Right of Return for the Palestinian refugees.
“Sharon would like to see a Palestinians State in half of the West Bank”, Gayer said, “He would like to implement confidence building measures, laying the main outline for an agreement”.
Meanwhile, Sharon said that the statements of Gayer contradict his position and views, adding that if these statements were “really made by Kalman, then they only represent his own view because they are nonsense”.
Yet, Sharon said that Jerusalem will remain the united capital of Israel, forever,  
"United Jerusalem will remain Israel’s capital forever, The Roadmap Map is the diplomatic plan that will lead Israel in the coming years and whoever says otherwise does so on his own behalf”, Sharon said, “Whoever says otherwise, does so in complete contradiction of my position; this is how these remarks must be treated”.
Officials in Sharon’s office said that they were surprised by the report which was published by the Israeli TV channel 1.
Advisors to Sharon who spoke to Gayer were informed that he had spoken to a Newsweek reporter to give him background information, but did not make the comment ascribed to him, Israeli online daily Haaretz reported.
Even after Sharon denied the report, he and his advisors had to provide explanations while at the same time trying to contain information which would be used by Sharon’s opponents in the upcoming elections.  
The first attack against Sharon was launched by Benjamin Netanyahu who said that “everyone knows that Sharon will divide Jerusalem, and withdraw to the 1967 borders”, and added that, “Sharon will bring the suicide bombers on the outskirts of Hadera and Netanya.
Also, Israeli Education Minister, Limor Livnat, and member of Knesset Gideon Sa’ar, who head the Likud party information panel, said that the remarks of Gayer provide additional proof that the platform of Kadima (Sharon’s new party) is leaning towards the left, “and promotes territorial concessions”.