The Palestinian president's office and senior officials have warned of the potential destructive effects of any move denying their claim to occupied East Jerusalem as the capital of their future state.
The warnings comes as US President Donald Trump is due to decide as early as the next week whether to move the US embassy from Tel Aviv to Jerusalem.
Reports emerged on Friday that Trump could again delay moving the embassy, but recognise Jerusalem as the capital of Israel, a move that would rewrite long-standing US policy and ignite tensions in the Middle East.
Saeb Erekat, secretary-general of the PLO Executive Committee, says he has spoken to Arab leaders, who have relayed the same message "that Jerusalem is a red line, not just for Palestinians but for Arabs, Muslims and Christians everywhere".
Speaking to Al Jazeera on Friday from Virginia, USA, Erekat said: "Everyone has informed the US administration that Jerusalem isn't just a Palestinian question, it's an Arab, Islamic and Christian question.
"The US administration understands the enormity of the subject.
"We are being told that promises were made during the election campaign that were postponed due to internal US problems facing Trump or anyone else ... but these are not our concern.
"This is a very big issue. To touch Jerusalem, touch al-Aqsa Mosque, touch the Church of the Holy Sepulchre - this is playing with fire.
"There is no meaning for a Palestinian state without East Jerusalem as its capital."