Senior Palestinian officials tell Fox News they are considering turning control of security in the Palestinian territories to Israel if there is no movement on the ground toward a Palestinian state.
"We cannot continue to let Israel occupy us for free," a senior Palestinian official traveling with the Palestinian president said.
"If they continue settlement building or freeze our tax money, which they give us, we will have no other option but to have them take over Palestine."
The move would cost Israel $3.2 billion dollars, according to the Palestinian Authority, a heavy burden for the Jewish state. Part of the costs would likely also be absorbed by the U.S., which provides Israel with $3 billion dollars each year for military spending.
On Friday, Palestinian officials are expected to present U.N. Secretary General Ban Ki Moon their official request for a vote to be taken in the security council for recognition of a Palestinian state.
Diplomats believe it may be some time before the vote is discussed or even brought forward.
In an interview with Fox News, Palestinian President Mahmoud Abbas says he will determine his next move in the days to come.
"To resign or not to resign, it depends on the consequences after we return back from the Unites Nations," Abbas said.
Abbas said he believes that there will be no third intifada.
"Maybe there will be peaceful demonstrations or protests here and there," Abbas said. "But the intifada will not be because the people believe that they will resist it."
Palestinian officials add that there is no sign of peace talks beginning soon.