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The Cenacle, which Christians believe to be the site of the Last Supper, is located on the second floor of the ancient Mount Zion building that also houses King David's tomb.
The next meeting of the full joint commission will take place on May 27, the statement said.
Deputy Foreign Minister Danny Ayalon headed the Israeli delegation at the plenary meeting of the joint economic commission on the deep-rooted disagreements that have long marred bilateral ties.
"We agreed to part with an agreement to disagree, which already prevents a crisis," Ayalon told Israeli public radio from Rome.
Both sides have instructed their respective negotiating teams to meet again once a month and try to "bridge or close the gaps on all the issues so we can prepare proposals for my next meeting with him that will take place in Rome at the end of May," he added.
Observers had expected that Pope Benedict XVI's visit to Israel in May would advance the dossier towards an accord by the end of this year.
Differences persist notably over the status of more than 100 Church properties in Israel, occupied east Jerusalem and the West Bank.
In the case of six sites in Jerusalem and the Galilee area, Israel rejects demands that the Church be granted full control of its property, and wishes to maintain a right to expropriate sections of the sites for future public infrastructure works.
The most contentious property is the Cenacle, which Christians believe to be the site of the Last Supper and which is located on the second floor of the ancient Mount Zion building that also houses King David's tomb.
Another source of discord is the status of the Hospice of the Daughters of Charity of St Vincent de Paul, which cares for Palestinians with severe physical and mental handicaps.
Israeli developers have long been interested in the sprawling site, which sits on prime real estate just outside the Christian quarter walls of the Old City.
Under a bilateral agreement signed in 1993, which marked a historic rapprochement, a joint commission was set up to resolve the financial and real estate issues, notably in territory occupied by the Jewish state after 1967.
Negotiations have sputtered ever since they resumed in 2004 after a 10-year hiatus.
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Deputy Foreign Minister Danny Ayalon headed the Israeli delegation at the plenary meeting of the joint economic commission on the deep-rooted disagreements that have long marred bilateral ties.
"We agreed to part with an agreement to disagree, which already prevents a crisis," Ayalon told Israeli public radio from Rome.
Both sides have instructed their respective negotiating teams to meet again once a month and try to "bridge or close the gaps on all the issues so we can prepare proposals for my next meeting with him that will take place in Rome at the end of May," he added.
Observers had expected that Pope Benedict XVI's visit to Israel in May would advance the dossier towards an accord by the end of this year.
Differences persist notably over the status of more than 100 Church properties in Israel, occupied east Jerusalem and the West Bank.
In the case of six sites in Jerusalem and the Galilee area, Israel rejects demands that the Church be granted full control of its property, and wishes to maintain a right to expropriate sections of the sites for future public infrastructure works.
The most contentious property is the Cenacle, which Christians believe to be the site of the Last Supper and which is located on the second floor of the ancient Mount Zion building that also houses King David's tomb.
Another source of discord is the status of the Hospice of the Daughters of Charity of St Vincent de Paul, which cares for Palestinians with severe physical and mental handicaps.
Israeli developers have long been interested in the sprawling site, which sits on prime real estate just outside the Christian quarter walls of the Old City.
Under a bilateral agreement signed in 1993, which marked a historic rapprochement, a joint commission was set up to resolve the financial and real estate issues, notably in territory occupied by the Jewish state after 1967.
Negotiations have sputtered ever since they resumed in 2004 after a 10-year hiatus.
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