According to the Jerusalem Post, the declaration was issued at the conclusion of a Central Council meeting on Monday.
"[The Central Council] decided to assign the PLO Executive Committee with suspending recognition of Israel until Israel recognizes the State of Palestine along 1967 borders, annuls its annexation of east Jerusalem and halts settlement building," the declaration said.
When last time the Central Council met in March 2015, it voted to suspend security coordination between the PA security forces and Israel.
Earlier on Sunday, President Mahmoud Abbas confirmed that Palestinians are being offered Abu Dis as the capital of a future Palestinian state.
Abu Dis is a Palestinian town on the outskirts of Jerusalem, where Al-Quds University, one of the largest Palestinian universities, is located.
The Jerusalem Post quoted Abbas, as saying that "What would you want if Jerusalem were to be lost? Would you want to make a state with Abu Dis as its capital?" Abbas stated rhetorically. "That's what they are offering us now. Abu Dis."
The Palestinian president did not mention, whose plan is to make Abu Dis as the capital of a future Palestinian state.
However, several Palestinian and Lebanese officials, have reportedly said that a forthcoming United States peace plan includes Abu Dis as the capital of a future Palestinian state.
Abbas said "no" to US President Donald Trump's peace plan.
"We can say no to anyone... And we have now said 'no' to Trump and others. No, we will not accept his plan," Abbas said. "We told him that the deal of the era is the slap of the era... We will repeal it," he added.
Since then, Israeli forces have killed 12 Palestinians. Unofficial figures of casualties vary between 30 to 40. At least 2,900 others have been injured and more than 400 arrested so far. (ANI)