RAMALLAH, June 12, 2012 (WAFA) - The Vatican Tuesday stated that their position on the annexation of East Jerusalem 'is unchanged', according to the Vatican’s Under-Secretary for Relations with States, Mgr Ettore Balestrero.

Balestrero told the Vatican Radio, in response to rumors, the Vatican was set to recognize Israel's annexation of East Jerusalem that 'the Holy See's position has not changed.'

Balestrero said the position of the Holy See remains in accordance to the main agreement signed between the Vatican and the Palestine Liberation Organization (PLO).

He said the agreement with Israel will not include property of the Catholic Church in East Jerusalem and the West Bank.

Palestinian officials have expressed concern over the meeting between the Holy See and Israel and the results concerning the state of East Jerusalem.

Earlier on Tuesday, the Bilateral Permanent Working Commission between the Holy See and the State of Israel met at the Plenary level, in the Apostolic Palace at the Vatican, to carry on negotiations pursuant to the Fundamental Agreement Art. 10 paragraph 2, dealing with economic and fiscal matters between the two states.

A statement from the Vatican said negotiations took place in a thoughtful and constructive atmosphere. The Commission took notice that significant progress was made towards the conclusion of the Agreement.

The meeting was headed by Balestrero, and the Israeli Deputy Minister of Foreign Affairs, Danny Ayalon.

The Parties have agreed upon future steps, as well as they agreed to hold the next plenary meeting on December 6, at the Israeli Ministry of Foreign Affairs.

M.H./F.R.