Israeli news media are reporting a split within the Israeli government about handing sovereignty over Christian holy sites to the Catholic Church.

According to the reports, Israeli President Shimon Peres favors ceding sovereignty of six holy sites, including the Church of the Annunciation in Nazareth and Gethsemane on the Mount of Olives in Jerusalem, to the Church.

Peres is being opposed by Israel’s interior minister, Eli Yishai. “Every concession like this limits the Israeli government’s ability to function as a sovereign government in the area,” Yishai said, according to a report on Israel’s Army Radio.

Negotiations between Israel and the Vatican over the issue have dragged on for years, in the context of resolving outstanding issues arising from the 1993 Fundamental Agreement between the two parties.

Despite 10 years of on-and-off negotiations, Israel has yet to fulfill the tax- and property-related guarantees specified by the Fundamental Agreement. The treaty protects the Church’s tax status in Israel and also protects Catholic holy sites and properties.

Some observers had suggested a final resolution of the land issues might be announced ahead of Pope Benedict XVI’s trip to the Holy Land, which starts May 8. But after the Bilateral Permanent Working Commission between the Holy See and the state of Israel held a plenary meeting at the Israeli ministry of foreign affairs April 30, the Vatican announced in a press release that another session would take place in December.

Go here and here to read accounts in the Israeli press about the issue.