The Palestinians will submit a draft resolution to the U.N. Security Council demanding the end of Israel's occupation by the end of October, a senior official said on Thursday.

The Palestinians have been under intense pressure not to push forward with the resolution -- including with alleged threats of cuts to U.S. aid -- but Palestine Liberation Organisation secretary general Yasser Abed Rabbo said a decision was taken late Wednesday to push ahead.

Palestinian protesters clashed with Israeli police in Jerusalem on Wednesday after authorities limited access for Muslim worshippers to the flashpoint Al-Aqsa mosque compound, police said.

Four Palestinians were arrested and three police were injured in the confrontation, police spokeswoman Luba Samri said.

French Foreign Minister Laurent Fabius said Tuesday that any recognition of Palestine as a state must be "helpful to peace" as part of a two-state solution, and not just symbolic.

A day after British lawmakers voted overwhelmingly to recognize Palestine as a state in a highly symbolic and non-binding vote, Fabius said France would do so only "when the time is right."

Despite a highly-symbolic British vote to recognize Palestine as a state, the road to official recognition is still fraught with obstacles, experts say, with the hoped-for two-state solution a long way off.

Diplomats and analysts see Monday's overwhelming British vote to recognize Palestine as a state, following Sweden's decision to do so, as a "small shift", but warn against reading too much into it.

British lawmakers were to hold a non-binding vote Monday on recognizing Palestine although government ministers will abstain in a sign of how political sensitive the issue is.

The debate is being closely watched internationally after Sweden incurred Israeli wrath this month for saying it will recognize Palestine.

The foreign minister of Israel, which was not invited to an international conference Sunday in Cairo on rebuilding Gaza, said any such effort would need his country's consent.

"Gaza cannot be rebuilt without the cooperation and participation of Israel," Avigdor Lieberman said in an interview with news website Ynet.

Two Israelis were arrested in the occupied West Bank Saturday after a mob attacked a Palestinian family picking olives at the start of harvest season -- a frequent source of tension.

Police spokeswoman Luba Samri told Agence France-Presse a Palestinian woman was hospitalized after being beaten with a stick and that two suspects -- one of whom was a minor -- had been detained. 

The U.N.'s Palestinian refugee agency is to make its largest ever financial plea to donors, it said on Thursday, asking for $1.6 billion (1.26 billion euros) to rehabilitate war-battered Gaza.

The conflict between Israel and Hamas-led Gaza militants, which ended on August 26, killed nearly 2,200 Palestinians, most of them civilians, and 73 people on the Israeli side, mostly soldiers.

Palestinian President Mahmoud Abbas on Wednesday accused the Israeli government of complicity in allowing Jewish "extremists" into Jerusalem's al-Aqsa mosque compound as dozens of Palestinian youths protested against Jews visiting the flashpoint holy site ahead of a religious feast.

"Aggression against the blessed al-Aqsa mosque is increasing, led by settlers and extremists, sponsored by the Israeli government," he said in a statement.

A Jerusalem court said it has ordered the Palestinian Authority to compensate an Israeli family after finding it indirectly responsible for an attack that killed three of its members.

The decision from September 22 states that the PA had transferred weapons and money used by the militants who carried out an attack on a highway which killed the three Israelis in 2001.