Palestinian President Mahmoud Abbas reacted to the 'peace plan' announced by his US counterpart Donald Trump, in Ramallah on Tuesday.

"Jerusalem is not for sale and all of our rights are not for sale or for compromise," he said, before adding that "plots, deals of the century and plans to liquidate the Palestinian cause are doomed to failure."

Abbas also thanked Palestinians "for their big stand in the face of the occupation, and for refusing the so-called deal of the century which will not pass."

"We will begin a new phase of the Palestinian dialogue, and joint action, and overcome our differences," he concluded.

Trump detailed his plans for his 'deal of the century', a set of proposals to end the Israeli-Palestinian conflict, in a joint statement with Israeli Prime Minister Benjamin Netanyahu in Washington DC on Tuesday.

Under the plan put forth, "Jerusalem will remain Israel's undivided capital".

Palestine cut ties with the US after Washington recognised Jerusalem as Israel's capital more than two years ago.

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