Palestinians threatened with eviction in East Jerusalem have rejected an offer that they rent their homes from a Jewish settlement organisation. In a closely-watched and divisive case, Israel's top court proposed a compromise to end a long legal fight.<br />''It suggested the four families could stay in their homes in Sheikh Jarrah if they recognised the land was owned by the settler company, but they refused.<br />''<br />''<span style="color: #000000;">The issue has fuelled Israel-Palestinian tensions in recent months. The threat of evictions stoked some of the worst violence between Israeli police and Palestinians in Jerusalem in years, culminating in an 11-day conflict with Gaza after its Hamas rulers fired rockets at the city in what it said was partly a response to Israeli "harassment" in Sheikh Jarrah.</span><br />