(Oded Balilty ~ Associated Press)
The comments, made as Israel marked the 45th anniversary of capturing East Jerusalem, were nearly unprecedented for a mainstream Israeli leader and put Olmert at odds with his successor, Benjamin Netanyahu. Celebrating Israel's control of the city on the Jewish state's "Jerusalem Day," Netanyahu declared his government was committed to keeping it the country's undivided capital.
"No Israeli government since 1967 has done even a smidgen of what was needed in order to unify the city in practical terms. That is a tragedy that is going to lead us, for want of another choice, to making inevitable political concessions," Olmert told the Maariv daily.
Israel captured East Jerusalem in the 1967 Middle East war and immediately annexed the area, home to sensitive Jewish, Christian and Muslim holy sites as well as a large Arab population. The Palestinians hope to make East Jerusalem the capital of an independent state including the neighboring West Bank and Gaza Strip.
Speaking Sunday evening from the site of a Jerusalem battle from that war, Netanyahu said the city will not be partitioned.
"Israel without Jerusalem is like a body without a heart. And our heart will never be divided again," he said.
The future of Jerusalem is one of the thorniest issues at the core of the conflict. Jerusalem's old city is home to a compound sacred to Jews as the Temple Mount and to Muslims as the Noble Sanctuary. Jews revere it as the site of their two biblical Temples and Muslims regard it as Islam's third-holiest site.
"There are those who believe that if we only divide Jerusalem, and that means giving up the Temple Mount, they believe we will have peace," Netanyahu said. "I am doubtful, to say the least, that if we deposit that square of the Temple Mount with other forces, that we won't quickly deteriorate to a religious sectarian war."
"I know that only under Israeli control is accessibility and religious freedom is ensured, and will continue to be ensured to all the religions. Only under Israel will the quiet be preserved, only under Israel will the peace between the religions be ensured," Netanyahu said.
Olmert said the notion of a united Holy City is unrealistic. He pointed to a number of Arab neighborhoods in East Jerusalem, saying they have not been integrated into the rest of the city.
"We can't unite them and connect them to the real fabric of life in Jerusalem, and except for grief, we haven't gotten anything from them," he said.
Olmert went through a dramatic political transformation late in his career.
As mayor from 1993 to 2003, he was an outspoken hard-liner opposed to concessions to the Palestinians. Then, while prime minister from 2006 to 2009, he pursued a peace agreement envisioning broad territorial concessions to the Palestinians before a corruption case forced him to step down.
In those talks, Olmert offered to turn over parts of East Jerusalem to the Palestinians, and have Jerusalem's Old City, home to the most sensitive religious sites, be administered by an international consortium including Israelis, Palestinians, Americans, Jordanians and Saudis.
Olmert claimed his talks with the Palestinians came tantalizingly close to an agreement. The Palestinians have said Olmert did not go far enough.
Since taking power three years ago, Netanyahu has repudiated Olmert's willingness to partition the city. With a newly expanded coalition, Netanyahu has cemented a formidable majority for his hardline policies.
The Palestinians have refused to conduct peace talks with Netanyahu unless he halts settlement construction in East Jerusalem and the West Bank. About 200,000 Israelis live in East Jerusalem, approaching the Arab population of about 280,000. Netanyahu says talks should resume without any preconditions.
Israel marked Sunday's anniversary with a series of marches and speeches throughout the city. The Palestinians' chief peace negotiator, Saeb Erekat, said the Israeli celebrations were "clear proof" that Israel is not interested in peace. "Clearly, this behavior reflects the mentality of a colonizer, rather than a supposed peace partner."
Also Sunday, Israel's Shin Bet security service said it had arrested nine Palestinians who tried to kidnap Israelis in the West Bank. The agency said in a statement that the ring made three unsuccessful kidnapping attempts in March, hoping to ransom the Israelis for Palestinian prisoners in Israel.
Last year, Israel released more than 1,000 Palestinian prisoners in exchange for a captive Israeli soldier.