Israel's new Cabinet has approved a plan for development at the Western Wall, a key Jewish holy site next to Jerusalem's most combustible area.

Past development projects in the area have sparked tensions with Palestinians, who accused Israel of threatening a compound that is holy to both Muslims and Jews.

The five-year plan, beginning next year, will include upgraded infrastructures, archaeological activity and development of the Western Wall site and underground tunnels that follow the length of the wall, a remnant of the ancient Jewish Temple complex.

In 1996, the opening of an exit from the tunnels into a Muslim area of the city sparked bloody riots.

The prime minister's office announced the plan Tuesday. It says a detailed plan will be presented to the Cabinet within two weeks.