Prime Minister Menachem Begin told the U.S. ambassador to Israel that no decision had been made on moving Begin's office to the annexed sector of Jerusalem, Israel Radio reported.
A spokesman for Ambassador Samuel Lewis would not confirm the state radio report. Begin's office would say only that the matter "was raised but not discussed" during a meeting by the two.
Israeli officials reportedly said on Sunday that Begin planned to moved his office to Arab sector of Jerusalem within three months to force de facto recognition of Israel's attempt to unify the sectors of the city as the Israeli capital.
In another development, two Norwegian soldiers from the United Nations peacekeeping force in Lebanon allegedly attended a planning meeting of the Palestinian guerrillas who seized a nursery and killed three Israelis, including one child, last April. The involvement of the two soldiers was reported in the confession of a young Lebanese civilian taken by Israelis.
A U.N. spokesman in Jerusalem called the charge "absurd and slanderous." The accusation was the latest exchange in the propaganda war between Israel and the U.N. force, which moved into Southern Lebanon two years ago when Israel withdrew.